Govt introduces Diamond Imprest Authorization scheme to support exporters

The Department of Commerce, Government of India, launched the Diamond Imprest Authorization (DIA) Scheme on January 21, 2025, as a strategic move aimed at strengthening the country’s foothold in the global diamond trade. The initiative seeks to simplify and reduce the costs associated with importing and handling diamonds for exporters, further positioning India as a key player in the international diamond market.

 

According to the announcement, the DIA scheme will come into effect on April 1, 2025, marking a new chapter for India’s diamond industry that aims to enable growth, create jobs, and meet renewed global competitiveness.

 

What the scheme offers

 

Duty-free imports: Exporters can import natural cut and polished diamonds of less than ¼ carat (25 cents) without paying customs duty.

 

Export obligation: Exporters must add at least 10 per cent value to these diamonds before exporting them.

 

Eligibility: The scheme is open to exporters with Two Star Export House status (a recognition granted by the Directorate General of Foreign Trade) and above, with at least $15 million in exports annually.

 

This move comes in response to policies in diamond-producing countries like Botswana and Namibia, where manufacturers must process diamonds locally. India’s DIA Scheme aims to keep investments and jobs within the country, helping small and medium diamond exporters (MSMEs) compete globally.

 

A step for job creation

 

The scheme brings multiple benefits to India, particularly in the diamond industry. It is expected to create job opportunities for skilled workers, including diamond assorters and polishers, thereby addressing unemployment concerns. 

 

Additionally, it provides much-needed support to the struggling diamond export sector, which has been grappling with job losses and declining exports. By simplifying business processes, the scheme also reinforces India’s position as a global leader in diamond processing and exports, further strengthening its foothold in the international market.