Latest UpdatesBusinessIndia to Launch Diamond Imprest Authorization (DIA) Scheme on April 1, 2025

India to Launch Diamond Imprest Authorization (DIA) Scheme on April 1, 2025

India is set to implement the Diamond Imprest Authorization (DIA) Scheme on April 1, 2025, marking a significant step toward revitalizing its diamond industry. The scheme is a strategic response to global trends in diamond beneficiation, which require diamond manufacturers to establish local processing facilities, and aims to bolster India’s position as a global leader in diamond exports.

What is the DIA Scheme?

The DIA Scheme is designed to enhance value addition and boost exports by permitting the duty-free import of natural cut and polished diamonds. Here are the key highlights:

  • Eligibility Criteria: Exporters must hold a Two Star Export House status and achieve annual exports of $15 million or more to qualify.
  • Import Specifications: The scheme allows duty-free import of diamonds under ¼ carat.
  • Value Addition Requirement: Exporters are required to add at least 10% value to the imported diamonds before re-exporting.

Exemptions and Benefits

The scheme provides several financial advantages to Indian diamond exporters, including:

  • Exemptions from Basic Customs Duty and Integrated Tax, significantly reducing import costs.
  • Enhanced competitiveness in the global market, especially for Micro, Small, and Medium Enterprises (MSMEs) that often face challenges in competing with larger firms.

Target Audience and Industry Focus

The DIA Scheme is tailored to benefit Indian diamond exporters, particularly smaller firms within the MSME sector. By reducing costs and offering incentives, the initiative aims to empower these businesses, enabling them to compete more effectively in both domestic and international markets.

Global and Economic Context

India’s move aligns with global beneficiation policies adopted by diamond-mining nations such as Botswana and Namibia, which emphasize local processing to maximize domestic value addition. The scheme also seeks to counter challenges posed by such policies, ensuring that India remains competitive in the diamond industry.

From an economic perspective, the DIA Scheme has multiple objectives:

  • Prevent Capital Flight: By encouraging local diamond processing, the scheme aims to reduce the outflow of capital to mining countries.
  • Job Creation: Increased domestic processing will create employment opportunities, providing much-needed relief to a sector that has faced job losses in recent years.
  • Revitalizing the Industry: With exports and employment in the diamond industry declining, the scheme is expected to stimulate growth, restore confidence, and promote long-term sustainability.

Challenges Addressed by the DIA Scheme

India’s diamond industry has been grappling with a decline in exports and workforce reductions. The DIA Scheme is envisioned as a rejuvenating measure, offering the necessary support to rebuild and strengthen this vital sector of the economy.

Summing Up

The Diamond Imprest Authorization Scheme is a forward-looking initiative that demonstrates India’s commitment to adapting to global market trends while addressing domestic industry challenges. By fostering value addition, reducing costs, and supporting exporters, the scheme is poised to reinforce India’s stature as a global diamond hub and pave the way for a more sustainable and competitive future in the sector.

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