Unveiled on January 21, 2025, by the Ministry of Commerce & Industry, the scheme will take effect on April 1, 2025, providing exporters with duty-free import benefits under specific conditions.

The Hon’ble Minister of Commerce & Industry, Shri Piyush Goyal, initially announced the scheme during the IIJS Premiere 2024 in Mumbai. Designed to sustain India’s leadership in diamond processing, the initiative addresses growing challenges posed by beneficiation policies in diamond-mining nations such as Botswana and Namibia, which require value addition in local facilities.

Key Features of the DIA Scheme:

1. Duty-Free Import: Allows duty-free imports of Natural Cut and Polished Diamonds (less than ¼ carat) under strict conditions.
2. Export Obligation: Requires 10% value addition on exports.
3. Eligibility: Exporters with Two Star Export House status and at least $15 million in exports annually for the past three years.
4. Limits and Validity: Authorisation for imports is capped at 5% of an exporter’s three-year average exports, with a maximum annual value of $15 million. Imports must be completed within one year, while exports must be fulfilled within 18 months.
5. Import-Export Conditions: Transactions are limited to Mumbai Airport, and all diamonds must be imported under Actual User Conditions.
6. Application Process: Applications are filed online through ANF-4J Form with the Regional Authority.

The scheme is expected to safeguard employment, particularly in the processing of semi-finished diamonds, and provide a level playing field for MSME exporters, preventing capital flight to overseas diamond-mining hubs.

Industry Response

Shri Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), commended the government for its timely intervention. “The DIA Scheme is a game-changer for the Indian diamond industry. By enhancing value addition and supporting MSMEs, it will strengthen our global leadership, secure jobs, and rejuvenate the sector during challenging times,” he said.

The initiative comes as India’s diamond exports face a decline, impacting both revenue and employment. By facilitating ease of doing business and ensuring compliance with global standards, the scheme aims to reinvigorate the diamond industry, promote exports, and create opportunities for skilled craftsmen.

The DIA Scheme reinforces India’s commitment to maintaining its position as the world’s leading diamond processing hub, fostering long-term growth and sustainability in the sector.