India's New DIA Scheme: A Gem in Boosting Diamond Exports

The Indian government's Diamond Imprest Authorization (DIA) Scheme is set to enhance the competitiveness of the diamond sector. This initiative allows duty-free imports of specific diamonds and mandates export value addition, thereby supporting the domestic industry and preventing investment flight.

The Government of India's Department of Commerce has launched a strategic initiative with the Diamond Imprest Authorization (DIA) Scheme, set to boost the nation's diamond sector competitiveness globally. As per a release from the Ministry of Commerce and Industry, a pivotal feature of the scheme is the allowance for duty-free importation of Natural Cut and Polished Diamonds weighing less than 1/4 Carat (25 Cents). The scheme obligates a 10 percent value addition through export activities.

Eligible participants include all Diamond exporters holding Two Star Export House status and above, and maintaining an annual export rate of USD 15 Million. The ministry noted that the initiative responds to beneficiation policies in diamond-rich nations like Botswana, Namibia, and Angola, where manufacturers must ensure a portion of value addition. This measure aligns with efforts to sustain India's global position in the diamond value chain.

Designed to level the competitive playing field for Indian exporters, particularly smaller MSME exporters, the scheme aims to mitigate the risk of investment diversion to international diamond-mining locales. Additionally, by bolstering the domestic diamond processing industry, this policy is anticipated to generate employment opportunities, especially in diamond sorting and semi-finished diamond processing sectors. The initiative is seen as a safeguard for local employment and industry sustainability.

(With inputs from agencies.)