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.
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Key Features of the DIA Scheme
- Duty-Free Import:
- Applies to Natural Cut and Polished Diamonds under ¼ Carat (25 Cents).
- Export Obligation:
- Mandatory 10% value addition on exported goods.
- Eligibility:
- Exporters must have a Two Star Export House status or higher.
- Annual export turnover of USD 15 million or more.
- Objective:
- Counter foreign beneficiation policies (e.g., in Botswana, Namibia, Angola).
- Ensure value addition and retain India’s global leadership in diamond manufacturing.
- 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.
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Status of Diamond sector
India is a global leader in the diamond industry, exporting the most polished diamonds in the world and processing most of the world’s rough diamonds.
- India accounts for 33% of global diamond exports by value.
- India processes ~90% of the world’s rough diamonds by volume.
- Surat is the main hub for cutting and polishing diamonds in India.
Factors for India’s success
- Liberalization: India’s government policies have been liberalized to help the diamond industry.
- Entrepreneurship: Entrepreneurs have played a role in India’s success in the diamond industry.
- Skilled labor: India has a skilled labor force in the diamond industry.
- Price competitiveness: India is able to compete on price.
- Strong financial base: India has a strong financial base for the diamond industry.
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22 Jan 2025
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