The Department of Commerce, Government of India, has announced the Diamond Imprest Authorisation (DIA) Scheme, which will take effect from 1 April 2025.
The initiative is aimed at supporting India’s diamond industry by enabling duty-free imports of natural cut and polished diamonds while imposing export obligations and value addition requirements on participating businesses.
Key Features of the DIA Scheme
The scheme permits duty-free import of natural cut and polished diamonds weighing less than 0.25 carats (25 cents). Eligibility is limited to exporters holding Two Star Export House status or higher, with annual exports exceeding $15 million.
Participating exporters are required to meet an export obligation with at least 10% value addition. This aligns with beneficiation policies seen in diamond-mining nations such as Botswana, Namibia, and Angola, where local processing is mandated to retain more value within their economies.
Support for MSMEs and Domestic Industry
The scheme aims to provide Indian diamond exporters, particularly micro, small, and medium enterprises (MSMEs), with a competitive edge by ensuring access to duty-free imports. It also seeks to reduce the likelihood of investment relocations to diamond-producing countries by incentivising local operations.
The initiative is expected to create jobs in the domestic diamond processing sector, particularly for workers engaged in sorting and polishing diamonds. This focus on employment aims to mitigate the challenges faced by the industry, such as declining exports and job losses.
Addressing Industry Challenges
India’s diamond industry has experienced setbacks in recent years, including reduced exports and workforce redundancies. By implementing a streamlined import process and emphasising value addition, the DIA Scheme seeks to address these issues and provide a foundation for sustained growth.
Implications for Jewellers
The scheme reflects India’s continued focus on maintaining its position in the global diamond trade by aligning with international standards and facilitating easier operations for exporters. It also highlights the government’s efforts to retain value addition within the domestic industry, ensuring that Indian diamond processors and craftsmen remain integral to the supply chain.
India’s diamond sector plays a significant role in the global market. The DIA Scheme is expected to support its recovery and provide opportunities for exporters to remain competitive internationally. Download the PDF here
