India to allow duty-free import of diamonds for re-export effective April 1

New Delhi: Beginning on April 1, 2025, India will permit the duty-free importation of natural cut and polished diamonds weighing less than a quarter carat.

The new Diamond Imprest Authorisation Scheme, which is available to "two star" Indian export companies with at least $15 million in yearly exports to their name, was launched by the Ministry of Commerce and Industry today.

This system demands export obligation with a value addition of 10%. The new plan will take effect on April 1st, the start of India's new fiscal year.

According to the Indian Ministry, the programme is based on comparable policies in major nations that mine natural diamonds, such as Botswana, Namibia, and Angola. “This initiative is geared towards retaining India’s status as a worldwide leader in the whole value chain of the global diamond industry,” it stated.

It is projected to significantly assist micro, small and medium firms in India’s diamond sector and enable them to compete with their larger colleagues. The Ministry stated that the programme "ensures compliance with international standards while enhancing ease of business."