Diamond Industry's Silver Lining: Boosting Exports with New Scheme

The Indian government introduced the Diamond Imprest Authorization scheme to revitalize the declining diamond export market by allowing duty-free imports of cut and polished diamonds. This initiative aims to increase value addition, create jobs, and retain India's competitive edge in the global diamond industry.

The Indian government has rolled out a new scheme to bolster the nation's faltering diamond export market. The Diamond Imprest Authorization scheme allows for duty-free imports of cut and polished diamonds, aiming to expand exports and enhance value addition in a sector hard-hit by global economic downturns.

The initiative springs from concerns voiced by the commerce ministry over declining exports and significant job losses in the diamond industry. By mandating an export obligation with a 10% value addition, the scheme seeks to rejuvenate the sector by providing a competitive edge against international markets.

Set to launch on April 1, the scheme will particularly benefit companies with two-star export house status, enhancing their ability to import diamonds duty-free, increase employment opportunities, and deter investments from shifting to rival diamond-mining nations.

(With inputs from agencies.)