The new Diamond Imprest Authorisation (DIA) plan, which goes into effect on April 1, intends to improve the competitiveness of small and medium-sized diamond manufacturers.
According to the Ministry of Commerce and Industry, the initiative is a strategic attempt to offset beneficiation measures implemented by diamond-producing countries such as Botswana, Namibia, and Angola. These countries require local processing of a percentage of rough diamonds, allowing them to control more of the industry’s value chain, typically at the expense of India’s traditional supremacy.
“The scheme is designed to create a level playing field for Indian diamond exporters, particularly those in the MSME sector, helping them compete more effectively with larger players,” according to the ministry.
The DIA initiative is only open to manufacturers with Two Star Export House status or higher, which requires a minimum yearly export turnover of $15 million. Participants must add at least 10% value to the diamonds, promoting domestic processing rather than simply re-exporting imported commodities.
The Gems and Jewellery Export Promotion Council (GJEPC), which played a key role in campaigning for the scheme, strongly supported the government’s decision.
Vipul Shah, Chairman of the GJEPC, hailed the move, saying, “We extend our sincere thanks to the Ministry of Commerce for this significant step, which will boost MSME exporters, protect jobs, and reinforce India’s leadership in the global diamond value chain.”
The DIA project is designed to give Indian manufacturers a much-needed competitive advantage, boosting exports while fostering local craftsmanship in the highly competitive global diamond business.