Diamond Imprest Authorization Scheme Launched to Revive India’s Diamond Sector and Boost Exports

The scheme will streamline the duty-free import of Natural Cut and Polished Diamonds (less than ¼ carat or 25 cents) and is set to be implemented from April 1, 2025.

The Department of Commerce, Government of India, has introduced the Diamond Imprest Authorization (DIA) Scheme on January 21, 2025, aiming to enhance the global competitiveness of India’s diamond industry. The scheme will streamline the duty-free import of Natural Cut and Polished Diamonds (less than ¼ carat or 25 cents) and is set to be implemented from April 1, 2025. Key Highlights of the DIA Scheme:

Duty-Free Import for Value Addition: The scheme facilitates the duty-free import of Natural Cut and Polished Diamonds for exporters, ensuring value addition and promoting export obligations with a minimum of 10% value addition.

Eligibility Criteria:

Exporters holding Two Star Export House status or higher.

Annual exports of at least US $15 million are required to avail of this benefit.

Global Competitiveness:

The DIA Scheme mirrors beneficiation policies adopted by diamond-rich countries like Botswana, Namibia, and Angola, requiring value-added processing of diamonds domestically.

It aims to secure India’s leadership in the global diamond value chain and prevent Indian investments from shifting to mining destinations.

Support for MSME Exporters: Designed to create a level playing field for MSMEs, the scheme enables smaller exporters to compete effectively with larger industry players.

Employment Generation:

The scheme is projected to create jobs, particularly for diamond assorters and workers in semi-finished diamond processing.

Skilled craftsmen in the diamond industry will also benefit, bolstering India’s workforce in this critical sector.

Significance and Impact on the Diamond Industry

India is a global leader in diamond processing and exports, but the industry has recently witnessed a decline in exports and job losses due to rising international competition and economic challenges. The DIA Scheme addresses these issues by:

• Rejuvenating the domestic diamond processing industry.
• Protecting employment in the sector while encouraging investments in high-value diamond manufacturing and exports.
• Ensuring compliance with international trade standards and promoting ease of doing business for exporters.

Boosting Exports and Employment

The scheme is expected to significantly increase the export of Cut and Polished Diamonds (CPDs) while creating employment opportunities across the diamond value chain. By promoting India as a premier hub for diamond cutting and polishing, the scheme strengthens the country’s position in the global diamond trade.

Addressing Declining Exports

With exports facing challenges, the scheme introduces a pathway for exporters to regain their competitive edge. The policy also protects India’s MSME sector, ensuring that smaller diamantaires are not left behind in the race for global dominance.

Conclusion

The Diamond Imprest Authorization (DIA) Scheme represents a pivotal step toward sustaining India’s leadership in the diamond industry while addressing its current challenges. With its focus on value addition, employment generation, and export growth, the scheme is poised to rejuvenate India’s diamond sector and reinforce its status as a global powerhouse in the diamond trade.