Amid fading exports, job losses, new scheme to restore diamond trade sheen

New Diamond Imprest Authorisation (DIA) scheme aims to boost India's diamond industry by allowing duty-free diamond imports for exports.

The Commerce Ministry on Tuesday introduced a new Diamond Imprest Authorisation (DIA) scheme to allow duty-free import of natural cut and polished diamonds for export purposes, acknowledging that India’s diamond industry is witnessing a steep decline in exports and job losses and pinning hopes on the DIA to combat this trend and reinvigorate the sector.

To be implemented from April 1, the DIA allows the import of diamonds of less than ¼ carat or 25 cents, with the mandate that they be exported with a value addition of 10%. “All diamond exporters holding Two Star Export House status and above and having $15 Million exports per year, are eligible for availing the benefit under this scheme,” the Ministry said.

“The scheme is made in response to Beneficiation policies undertaken in a number of natural diamond mining countries like Botswana, Namibia and Angola, where diamond manufactures are obliged to open cut and polishing facilities for a minimum percentage of value addition,” the Ministry pointed out.

The DIA will help retain India’s position as a global leader in the entire diamond value chain, by levelling the playing field for Indian diamond exporters, particularly micro, small and medium enterprises (MSMEs), enabling them to compete effectively with larger peers.

Preventing the potential flight of investments by Indian diamantaires to diamond-mining destinations, is another objective of the DIA that is expected to generate more jobs as well, particularly for diamond assorters, and in the processing of semi-finished diamonds in factories, the ministry stated.