The Department of Commerce, Government of India introduced the Diamond Imprest Authorization (DIA) Scheme under Chapter 4 of Foreign Trade Policy 2023.

• This scheme is a timely intervention to address challenges faced by the diamond industry, providing a foundation for sustainable growth and employment in the sector.

Objective: The scheme facilitates the duty-free import of Natural Cut and Polished Diamonds, aiming to boost exports and value addition while addressing industry challenges.

Initiation: Effective from April 1, 2025.

Goal: Enhancing the global competitiveness of India’s diamond sector. 

Enroll now for UPSC Online Classes

Key Features of the DIA Scheme

1. Duty-Free Import:
   • Applies to Natural Cut and Polished Diamonds under ¼ Carat (25 Cents).
2. Export Obligation:
   • Mandatory 10% value addition on exported goods.
3. Eligibility:
   • Exporters must have a Two Star Export House status or higher.
   • Annual export turnover of USD 15 million or more.
4. Objective:
   • Counter foreign beneficiation policies (e.g., in Botswana, Namibia, Angola).
   • Ensure value addition and retain India’s global leadership in diamond manufacturing.
5. Support for MSMEs:
   • Focus on small and medium enterprises to compete with larger peers.
   • Prevent investment flight to diamond-mining countries.

Expected Benefits

• Revitalize the Diamond Industry:
  • Combat the decline in exports and associated job losses.
• Employment Generation:
  • Create more jobs for diamond assorters and workers in semi-finished diamond processing.
  • Offer new opportunities for skilled craftsmen.
• Protect Domestic Industry:
  • Preserve the domestic diamond processing ecosystem.
• Boost Exports:
  • Increase exports of Cut and Polished Diamonds.
• Ease of Doing Business:
  • Improve compliance with international standards.

Strategic Importance

• Helps Indian exporters compete on a global scale, particularly in the face of value-addition requirements in diamond-mining countries.
  • This decline is attributed to economic uncertainty, with buyers turning to gold as a safer investment option instead of spending on lifestyle products.
• Reinforces India’s position as a global hub for diamond trade and processing.

Check Out UPSC NCERT Textbooks From PW Store

DOWNLOAD PDF