DIA Scheme to Revitalize Surat Diamond Industry

Surat : At a time when the diamond industry is witnessing a steep decline in exports and job losses for the workers, the Surat diamond industry, world’s largest diamond cutting and polishing hub, is set for a major boost with the introduction of Diamond Imprest Authorisation (DIA) scheme by the Government of India. 

The scheme is designed to provide a level playing field for Indian diamond exporters, particularly MSME exporters, enabling them to compete effectively with larger peers. It aims to prevent the potential flight of investments by Indian diamantaires to diamond-mining destinations. Additionally, the scheme is expected to generate more employment opportunities, particularly for diamond assorters and in the processing of semi-finished diamonds in factories. By facilitating Indian exporters, it seeks to protect the domestic diamond processing industry and sustain the associated employment.

The Department of Commerce, Government of India has introduced the Diamond Imprest Authorisation (DIA) Scheme, aiming to enhance India’s global competitiveness in the diamond sector, according to a statement from the Ministry of Commerce & Industry. Announced on 21st January 2025, the scheme will come into effect on 1st April 2025, offering duty-free imports of Natural Cut and Polished Diamonds under specific conditions to support exporters and sustain domestic industry growth.

Vipul Shah, Chairman of Gems and Jewellery Export Promotion Council (GJEPC), said, “GJEPC extends its heartfelt gratitude to the Department of Commerce, Government of India, particularly the Ministry of Commerce & Industry, for this timely initiative, which will bolster MSME exporters, safeguard employment, and secure India’s position as a global leader in diamond processing. By enabling value addition and enhancing competitiveness, the scheme will rejuvenate our industry and pave the way for sustained growth and global excellence.”

According to Shah, the DIA scheme allows the duty-free import of Natural Cut and Polished Diamonds, of less than ¼ carat (25 cents), including semi-processed, broken, half cut, etc.

All diamond exporters holding Two Star Export House status and above and having US $15 Million exports in each of the past 3 fiscal years, are eligible for availing the benefit under this scheme.Import and Export will be from Mumbai Airport only.

The scheme is made in response to beneficiation policies undertaken in a number of natural diamond mining countries like Botswana, Namibia Angola, etc. where diamond manufactures are obliged to open cut and polishing facilities for a minimum percentage of value addition. This scheme is aimed towards retaining India’s position as a global leader in the entire value chain of diamond industry.

The DIA Scheme reinforces India’s position as a leading player in the global diamond trade, ensuring compliance with international standards while facilitating ease of doing business. This scheme also expected to create employment opportunities for skilled craftsmen in diamond industry and is also expected to increase the export of cut and polished diamond from India.