Picture for illustrative purposes only. ARCHIVE

India will allow the duty-free import of natural, cut, and polished diamonds weighing less than 0.25 carats starting April 1. The Indian Ministry of Commerce and Industry announced the Diamond Imprest Authorisation Scheme, aimed at boosting the competitiveness of the country’s micro, small, and medium enterprises (MSMEs) in the diamond sector. “This scheme is designed to retain India’s leadership in the entire value chain of the global diamond industry,” the Ministry said in a statement. Eligibility for the scheme is limited to "two-star" export houses with an annual export turnover of at least $15 million. These entities are required to meet an export obligation with a minimum 10 percent value addition, ensuring significant economic benefit. The scheme aligns with practices in diamond-mining nations such as Botswana and Namibia, where similar policies have propelled local industries. India's diamond sector, which contributes significantly to the country’s economy, is expected to see a surge in exports under the new policy. “The scheme ensures compliance with international standards while facilitating ease of doing business,” the Ministry added. The move is seen as particularly advantageous for smaller players in the industry. By removing the import duty, MSMEs can better compete with larger corporations that dominate the sector. Industry leaders have praised the initiative, calling it a step in the right direction. “This will give a much-needed boost to small enterprises that often struggle with high operational costs,” said an industry spokesperson. ICA/Expat Media
For all the latest news from the UAE and the world, follow us on Facebook, Twitter and Instagram and subscribe to our YouTube page