India's Manufacturers Welcome Duty-Free Rules
January 28, 25
(IDEX Online) - India's government is responding to industry calls by zero-rating duty on imports of natural polished diamonds under 0.25 carats.
The Diamond Imprest Authorisation (DIA) scheme comes into force on 1 April and is aimed at boosting the competitiveness of small and medium sized manufacturers in the diamond sector.
India's Ministry of Commerce and Industry says the DIA is a strategic response to Botswana, Namibia, Angola and other diamond mining countries which have beneficiation policies, requiring manufacturers to process a portion of their rough locally - rather than in India - allowing them to to capture more of the value chain.
"The scheme is crafted to provide a level-playing field for Indian diamond exporters, particularly MSME exporters, enabling them to compete effectively with larger peers," said the ministry in a statement.
The DIA is open to manufacturers with Two Star Export House status or higher - those exporting over $15m of goods a year.
They are required to add at least 10 per cent of value, a move designed to promotes domestic processing rather than just the re-export of imported diamonds.
The Gems and Jewellery Export Promotion Council (GJEPC), which lobbied for the DIA, welcomed news of its introduction.
Its chairman Vipul Shah extended his "heartfelt gratitude" to the Ministry of Commerce and said the move would "bolster MSME exporters, safeguard employment and secure India's position as a global leader in the entire value chain of the diamond industry."