The Department of Commerce and Industry has introduced the Diamond Imprest Authorization (DIA) Scheme, effective April 1, 2025, to boost the global competitiveness of India’s diamond industry. The scheme aims to streamline duty-free imports of small diamonds, promote value addition, and boost exports, particularly benefiting MSME exporters. A press release on the scheme was issued on January 21, 2025.
Key Features of the DIA Scheme:
- Allows duty-free import of natural cut and polished diamonds less than ¼ carat (25 cents).
- Requires an export obligation with a value addition of 10%.
- Available to diamond exporters with Two Star Export House status and above, and annual exports of at least US$15 million.
Rationale and Objectives
The DIA Scheme is a direct response to beneficiation policies adopted by several diamond-mining countries (e.g., Botswana, Namibia, Angola), which require diamond manufacturers to establish local cutting and polishing facilities. The scheme aims to:
- Maintain India’s Global Leadership: Retain India’s position as a leader across the entire diamond value chain.
- Level the Playing Field: Provide a competitive advantage for Indian diamond exporters, especially MSMEs, allowing them to compete with larger international players.
- Prevent Investment Flight: Discourage Indian diamantaires from relocating investments to diamond-mining countries.
- Generate Employment: Create more employment opportunities, particularly for diamond assorters and in the processing of semi-finished diamonds.
- Protect Domestic Industry: Safeguard the domestic diamond processing industry and associated jobs.
Expected Outcomes:
The DIA Scheme is expected to:
- Reinforce India’s Global Position: Strengthen India’s standing in the global diamond trade while adhering to international standards and promoting ease of doing business.
- Create Skilled Jobs: Generate employment opportunities for skilled diamond craftsmen.
- Increase Diamond Exports: Drive growth in exports of cut and polished diamonds from India.
- Revitalize the Industry: Address the current decline in diamond exports and prevent further job losses within the sector.
