India Unveils DIA Scheme to Strengthen Leadership in Global Diamond Industry

India Unveils DIA Scheme to Strengthen Leadership in Global Diamond Industry

In a significant move to reinforce its position as a global leader in diamond industry, India’s Department of Commerce announced Diamond Imprest Authorization (DIA) Scheme on Tuesday. This groundbreaking initiative aims to address challenges faced by diamond sector, including declining exports and job losses, while fostering innovation and maintaining India’s competitive edge.

India Launches DIA Scheme to Boost Global Diamond Industry Position as part of a strategic effort to revitalize this critical sector, which has long been a pillar of India’s export economy.

Key Highlights of DIA Scheme

AspectDetails
Scheme NameDiamond Imprest Authorization (DIA) Scheme
Effective DateApril 2025
EligibilityTwo-star export houses and above with annual exports exceeding $15 million
Key IncentiveDuty-free import of natural cut and polished diamonds under ¼ carat (25 cents)
Value Addition RequirementMinimum 10% value addition on imports
Targeted OutcomesRevitalize exports, create jobs, foster innovation, and retain global leadership
Major Export MarketsUnited States, Hong Kong, UAE

Rationale Behind DIA Scheme

DIA Scheme comes at a critical juncture for diamond industry, which has been grappling with rising costs, global competition, and declining exports. According to Commerce Ministry, gem and jewellery exports fell to $32.71 billion in FY24, a three-year low compared to $37.96 billion in FY23 and $38.94 billion in FY22.

scheme, which is set to come into effect in April, aims to revitalize diamond sector, which has been grappling with declining exports and job losses. It is designed to align with global practices by fostering local value addition, similar to policies implemented in diamond-rich nations such as Botswana, Namibia, and Angola.

By ensuring that Indian diamantaires can access raw materials at competitive rates, scheme is expected to prevent relocation of operations abroad and sustain India’s dominance in global diamond processing market, which accounts for 90% of global activity.

Eligibility and Implementation

DIA Scheme is targeted at two-star export houses and above, requiring annual export revenues of over $15 million. This selective approach ensures that resources are directed toward businesses with capacity to maximize scheme’s benefits.

Major Provisions of Scheme

  1. Duty-Free Import: Eligible exporters can import natural cut and polished diamonds under ¼ carat (25 cents) duty-free.
  2. Value Addition Clause: To qualify, exporters must meet a minimum value addition threshold of 10%.
  3. Streamlined Processes: scheme simplifies procedural hurdles, reducing administrative overheads for exporters.

Industry Support and Anticipated Impact

initiative has garnered widespread support from industry leaders and stakeholders.

Vipul Shah, Chairman of Gem and Jewellery Export Promotion Council (GJEPC), emphasized transformative potential of scheme, stating:
“DIA Scheme has potential to significantly reduce input costs and drive innovation in cutting and polishing techniques. It is a bold step that supports MSME exporters and reinforces India’s commitment to maintaining its leadership in global diamond trade.”

initiative is also expected to stimulate job creation across diamond industry’s value chain, from skilled artisans to processing units. Given that diamond sector is highly labor-intensive, this scheme could offer much-needed relief to workers affected by recent downturns.

Boosting Exports and Global Competitiveness

India’s diamond industry relies heavily on exports, with major markets including United States, Hong Kong, and UAE. Despite recent challenges, GJEPC had set an ambitious export target of $40 billion for FY24. DIA Scheme is expected to play a pivotal role in achieving such targets by enhancing competitiveness and driving demand.

India does not produce rough diamonds in significant quantities, relying instead on imports for raw materials. country excels in adding value through cutting, polishing, and exporting finished diamonds, a process that has historically positioned it as global leader in diamond processing.

Addressing Challenges and Ensuring Sustainability

scheme aims to address critical challenges facing industry, including:

  • Rising Costs: Duty-free imports reduce input costs, ensuring Indian exporters can compete globally.
  • Global Competition: With increasing pressure from diamond-producing nations, DIA Scheme provides a level playing field.
  • Economic Uncertainty: By stabilizing industry, scheme mitigates risks associated with fluctuating global demand.

Aligning with Global Practices

DIA Scheme mirrors beneficiation policies in countries like Botswana and Namibia, which mandate local processing of raw diamonds. These practices have successfully generated jobs and enhanced economic growth in those nations. By adopting a similar model, India aims to safeguard its position as a global leader in diamond processing.

A Path to Innovation

In addition to immediate economic benefits, scheme encourages technological innovation. Reduced costs for raw materials allow businesses to invest in advanced cutting and polishing techniques, further cementing India’s reputation for quality craftsmanship.

Conclusion

India Launches DIA Scheme to Boost Global Diamond Industry Position, reaffirming its commitment to sustaining its leadership in this vital sector. scheme not only addresses current challenges but also lays foundation for long-term growth and innovation.

With diamond industry contributing significantly to India’s economy, DIA Scheme is poised to revitalize sector, ensuring that Indian diamantaires remain at forefront of global trade. As initiative takes effect in April, it is expected to create a ripple effect of positive outcomes, from job creation to increased exports, reinforcing India’s status as a global diamond hub.

Disclaimer

This article is based on publicly available information and official statements. While every effort has been made to ensure accuracy, readers are advised to consult official sources for most reliable and up-to-date information.

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