Government Launches Diamond Imprest Authorization Scheme to Revitalize Industry
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Synopsis
The Indian government has introduced the Diamond Imprest Authorization Scheme to enhance the global competitiveness of the diamond sector. Set to begin on April 1, the initiative allows duty-free imports of diamonds under specific conditions, aiming to boost exports and create jobs in the industry.
Key Takeaways
- Launch of Diamond Imprest Authorization Scheme
- Effective from April 1
- Duty-free import of natural cut diamonds
- 10% value addition requirement
- Aims to create job opportunities
New Delhi, Jan 22 (NationPress) In a bid to boost the global competitiveness of India’s diamond industry, the government has rolled out the Diamond Imprest Authorization (DIA) Scheme, set to take effect on April 1.
This initiative offers a simplified process for duty-free imports of natural cut and polished diamonds, enhancing value addition and stimulating exports, as reported by the Department of Commerce.
The scheme permits the duty-free import of natural cut and polished diamonds weighing less than one-fourth carat (25 Cents).
It requires an export obligation with a 10 percent value addition.
According to the government, “Any diamond exporters with 'Two Star Export House' status or above, and having $15 million in annual exports, are eligible for benefits under this scheme.”
This initiative is a response to the ‘Beneficiation' policies implemented in various natural diamond mining nations such as Botswana, Namibia, and Angola, where diamond manufacturers must establish cutting and polishing facilities for a minimum percentage of value addition.
The scheme also aims to maintain India’s status as a global leader in the complete diamond industry value chain.
“This scheme is crafted to offer a level playing field for Indian diamond exporters, especially MSME exporters, enabling them to effectively compete with larger companies,” stated the Commerce Ministry.
Moreover, it is anticipated that the scheme will create numerous employment opportunities, particularly for diamond assorters and in the processing of semi-finished diamonds within factories. By assisting Indian exporters, it aims to safeguard the domestic diamond processing sector and sustain the associated jobs.
The diamond sector is currently experiencing a significant drop in exports and job losses among workers. This scheme is expected to counteract this trend and rejuvenate the diamond industry.
According to the latest data from the Gems and Jewellery Export Promotion Council (GJEPC), the total gross exports of gems and jewellery in December 2024 reached $1967.98 million, reflecting a 10.29 percent decline compared to the same period last year.
This decline is attributed to economic uncertainty in the market, causing buyers to gravitate towards yellow metals as a safe investment rather than indulging in luxury purchases, as noted by the Council.
