To boost the competitiveness of India's diamond industry, the Union government has launched the Diamond Imprest Authorisation (DIA) Scheme, which facilitates the duty-free import of natural cut and polished diamonds.

Starting April 1, the DIA Scheme will simplify the process for importing natural cut and polished diamonds under ¼ carat (25 cents) without any duty to encourage value addition and drive export growth, as outlined in a press release from the Ministry of Commerce & Industry.

The statement mentioned that the scheme is accompanied by an export obligation requiring a 10 per cent value addition. To benefit from this initiative, diamond exporters must have a Two Star Export House status or higher and an annual export volume of at least $15 million.

This move is in line with 'Beneficiation' policies adopted by several countries that mine natural diamonds, including Botswana, Namibia and Angola, which mandate that manufacturers establish cut and polishing facilities to add a minimum percentage of value to the diamonds.

The scheme is also a step toward maintaining India's leader position in global diamond industry 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," the Ministry of Commerce said.

The DIA Scheme is also anticipated to create additional employment opportunities, particularly for diamond assorters and workers involved in processing semi-finished diamonds. By supporting Indian exporters, the initiative aims to safeguard the domestic diamond processing industry and preserve jobs in the sector.

The diamond industry has been grappling with a sharp drop in exports and significant job losses among its workforce. This scheme is expected to counter these challenges and revitalise the sector.

Recent data from the Gems and Jewellery Export Promotion Council (GJEPC) highlights the industry's struggles. India’s gross exports of gems and jewellery in December 2024 amounted to $1,967.98 million, reflecting a 10.29 per cent decrease compared to the same period in the previous year. This decline has been attributed to economic uncertainties, with consumers opting for gold as a safer investment rather than spending on lifestyle products, as noted by the Council.