INDIA: India has introduced a policy allowing duty-free import of diamonds specifically for re-export purposes, effective from April 1. The initiative is aimed at bolstering the country’s position as a global hub for diamond trade and manufacturing. The policy is part of the government’s broader strategy to enhance trade competitiveness and attract international stakeholders to its diamond industry.
Under this scheme, diamond importers are mandated to fulfill an export obligation with a value addition of at least 10%. This condition ensures that the imported diamonds are not only re-exported but also contribute to the value chain in terms of cutting, polishing, or other enhancements. The requirement underscores the government’s commitment to promoting India’s skilled workforce in the diamond sector.
The decision is expected to provide significant relief to diamond traders and exporters who have long advocated for reduced import duties. By eliminating the duty, the government aims to reduce costs, increase profit margins, and make Indian diamonds more competitive on the global market. The move also seeks to attract international buyers and strengthen trade relationships with key markets.
While the policy has been lauded by many in the industry, it also comes with challenges. Industry experts emphasize the importance of strict compliance with the export obligations to prevent misuse of the scheme. Moreover, they highlight the need for robust monitoring mechanisms to ensure that the diamonds are processed and exported as intended. The success of the initiative will depend on its effective implementation and the cooperation of all stakeholders involved.
