India-Italy Diamond Trade Gets Boost as BDB Seeks Key VAT Reforms

MUMBAI : In a significant step towards deepening bilateral cooperation in the global diamond and jewellery industry, the Bharat Diamond Bourse (BDB) hosted H.E. Walter Ferrara, Consul General of Italy in Mumbai, for high-level discussions aimed at strengthening trade ties between India and Italy. The meeting focused on policy reforms, investment opportunities, and measures to facilitate smoother business between the two countries.

The BDB delegation was led by President Anoop Mehta and included Vice President Mehul N. Shah, Honorary Joint Secretary Prakash Shah, and committee members Kiran K. Gandhi, Milan K. Parikh, Paresh Mehta, and Ramniklal Shah.

Highlighting the strong trade relationship, BDB leaders noted that India remains the world’s largest supplier of diamonds, while Italy is recognised for its world-class jewellery craftsmanship and is Europe’s leading diamond and jewellery hub. The two countries already enjoy robust business ties, with nearly 100 Indian exhibitors participating annually in Vicenzaoro, Europe’s largest jewellery exhibition.

During the discussions, BDB urged Italian authorities to reconsider the current taxation framework on loose diamonds. The industry body proposed shifting the collection of the 18% VAT from the point of import to the point of sale to improve liquidity for Italian traders.

“The current system impacts the liquidity of Italian traders and hampers the cycle of trading and manufacturing. Shifting collection to the point of sale would ensure smooth tax compliance while also enabling smoother trade between the two countries,” said Mehul N. Shah, Vice President of BDB.

Consul General Walter Ferrara acknowledged the industry’s concerns and assured the delegation that their recommendations would be conveyed to the relevant Italian authorities. He also pledged continued support for BDB members, including assistance in facilitating faster visa processing for business travellers.

The visit concluded with a tour of the Bharat Diamond Bourse campus and its MDMA Hall, showcasing the bourse’s advanced infrastructure and integrated trading ecosystem. BDB said the interaction reaffirmed its commitment to strengthening international partnerships and promoting sustainable growth in the global diamond and jewellery sector.