The Union Government, with an aim to enhance the global competitiveness of India’s diamond sector, has launched the Diamond Imprest Authorisation Scheme. It is set to be executed from April 1.
In an official communication, the Ministry of Commerce and Industry said the scheme delivers a streamlined mechanism for the duty-free import of natural cut and polished diamonds of less than one-fourth carat (25 Cents), hence, promoting value addition and boosting exports.
The scheme requires export obligations with a value addition of 10 per cent, as stated by the government.
“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 the scheme,” it added.
It is designed in response to the ‘Beneficiation’ policies undertaken in a number of natural diamond mining countries, including, Botswana, Namibia and Angola, where the manufacturers have to open-cut and polishing facilities for a minimum percentage of value addition.
This scheme also manages India’s position as a global leader in the entire value chain of the diamond industry.
“The scheme is designed to provide a level playing field for Indian diamond exporters, particularly the Micro, Small and Medium Enterprises (MSME) exporters, enabling them to compete effectively with larger peers,” stated the commerce ministry.
The scheme is also anticipated to create more job opportunities, especially for diamond assorters and in the processing of semi-finished diamonds in factories. By supporting Indian exporters, it aims to safeguard the domestic diamond processing industry and sustain the associated employment.
The diamond industry is facing a steep decline in exports and job losses among workers. The scheme is expected to combat this trend and rejuvenate the diamond sector.
In the latest data by the Gems and Jewellery Export Promotion Council (CJEPC), the overall gross exports of gems and jewellery in December 2024 stood at $1967.98 million, marking a decline of 10.29 per cent for the same period last year. This is because of the economic slowdown, switching the buyers to use gold as a safer investment option rather than spending it as a lifestyle product, as stated by the Council.
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