New Delhi, Jan 22, 2025, IANS

New Delhi, Jan 22 (IANS) With an aim to enhance the global competitiveness of India’s diamond sector, the government has introduced the Diamond Imprest Authorization (DIA) Scheme that will be implemented from April 1. The scheme provides a streamlined mechanism for duty free import of natural cut and polished diamonds, thereby promoting value addition and boosting exports, according to Department of Commerce. This scheme allows the duty-free import of natural cut and polished diamonds, of less than one-fourth carat (25 Cents). The scheme mandates export obligation with a value addition of 10 per cent. “All diamond exporters holding 'Two Star Export House' status and above and having $15 million exports per year, are eligible for availing the benefit under this scheme,” said the government. The scheme is made in response to ‘Beneficiation' policies undertaken in a number of natural diamond mining countries like Botswana, Namibia and Angola etc, where diamond manufactures are obliged to open cut and polishing facilities for a minimum percentage of value addition. This scheme is also aimed towards retaining India’s position as a global leader in the entire value chain of diamond industry. “The scheme is designed to provide a level-playing field for Indian diamond exporters, particularly MSME exporters, enabling them to compete effectively with larger peers,” said the Commerce Ministry. Additionally, the scheme is expected to generate more employment opportunities, particularly for diamond assorters and in the processing of semi-finished diamonds in factories. By facilitating Indian exporters, it seeks to protect the domestic diamond processing industry and sustain the associated employment. The diamond industry is witnessing a steep decline in exports and job losses for the workers. This scheme is expected to combat this trend and will rejuvenate the diamond Industry. As per latest data by the Gems and Jewellery Export Promotion Council (GJEPC), the overall gross exports of gems and jewellery in December 2024 stood at $1967.98 million, showing a decline of 10.29 per cent from the same period last year. This is due to the economic uncertainty looming in the market due to which buyers are leaning more towards the yellow metal as safe haven for investments rather than splurging on lifestyle, said the Council.