The Government of India’s introduction of the Diamond Imprest Authorization (DIA) Scheme is a strategic initiative to bolster the diamond industry’s global competitiveness. Announced on January 21, 2025, and effective from April 1, 2025, the scheme facilitates duty-free import of Natural Cut and Polished Diamonds (less than ¼ carat or 25 cents) with the aim of promoting value addition and boosting exports.
Key Highlights of the DIA Scheme:
- Eligibility:
- Applicable to diamond exporters with Two Star Export House status or higher.
- Annual export turnover of at least USD 15 million required.
- Mandates:
- Export obligation with a minimum value addition of 10%.
- Objectives:
- Combat declining diamond exports.
- Address job losses in the industry.
- Rejuvenate India’s position as a global diamond leader.
India’s Diamond Industry:
- Cutting and Polishing Hub: India processes 14 out of 15 diamonds globally, contributing over USD 23 billion annually to exports.
- Bharat Diamond Bourse, Mumbai: The largest diamond bourse globally, with over 2,500 offices.
- Global Impact: India exports diamond and studded jewelry worldwide, including to the US, Europe, the Middle East, and Asia.
- The diamond industry faces challenges such as declining exports and worker layoffs.
- India’s rich diamond legacy includes iconic gemstones like the Koh-i-noor, Evening Star, and Hope Diamond, all originating from the Krishna River beds in southern India.
- The scheme is expected to strengthen the supply chain and boost employment in the sector.
Global Diamond Landscape:
- Natural Diamonds: Formed billions of years ago under extreme conditions in the Earth’s crust.
- Top Producer: Russia leads with nearly 42 million carats mined in 2022.
- Lab-Grown Diamonds: Produced through High Pressure High Temperature (HPHT) or Chemical Vapor Deposition (CVD) methods, providing alternatives to natural stones.
