NEW DELHI: India is set to allow duty-free imports of natural cut and polished diamonds smaller than a quarter carat starting April 1, 2025.

Announced by the Ministry of Commerce and Industry, the new Diamond Imprest Authorisation Scheme targets “two star” export houses with annual exports exceeding $15 million. Participants are required to meet an export obligation with 10% value addition, ensuring alignment with international practices.

Modelled after policies in diamond-rich nations like Botswana, Namibia, and Angola, the scheme underscores India’s ambition to remain a global diamond leader. The country already plays a pivotal role in the diamond supply chain, handling a significant portion of the world’s cutting and polishing work.

Aimed at benefitting micro, small, and medium enterprises (MSMEs) in India’s diamond sector, the scheme seeks to level the playing field, enabling smaller businesses to compete more effectively with larger firms. This move is expected to bolster the ease of doing business, encouraging compliance with global standards and reinforcing India’s reputation as a diamond industry hub.

The Ministry highlighted that this initiative will further consolidate India’s position across the entire diamond value chain, from sourcing to finished products. It also supports the country’s vision of expanding its export footprint in the global jewellery market.

The scheme comes at a strategic time, ensuring that India remains competitive while fostering innovation and inclusivity within the sector.

With the scheme set to begin with the start of the next financial year, the diamond industry anticipates significant growth and greater opportunities for smaller players to shine on the global stage.