News: The Department of Commerce, Government of India, has introduced Diamond Imprest Authorisation (DIA) Scheme for the duty-free import of natural cut and polished diamonds.
About Diamond Imprest Authorisation
- It aims to enhance the global competitiveness of India’s diamond sector by providing a streamlined mechanism for duty free import of natural cut and polished diamonds, leading to value addition and boost in exports.
- The scheme has been introduced under the Foreign Trade Policy 2023.
- Key Features:
- Duty-free import of Natural Cut and Polished Diamonds, of less than ¼ Carat (25 Cents).
- Export Obligation: Mandating export obligation with a value addition of 10%.
- Eligibility: All Diamond exporters holding Two Star Export House status and above and having US $15 Million exports per year.
- The scheme does not cover the Lab Grown Diamonds (LGD).
- Potential Benefits:
- Providing a level playing field for Indian diamond exporters (particularly MSME exporters) to enable them to compete effectively.
- Generating more employment opportunities in the diamond sector.
- Encouraging the domestic diamond processing industry by facilitating ease of doing business and increasing the export of cut and polished diamond from India.
