India Launches Diamond Imprest Authorization Scheme to Boost Diamond Sector
India Introduces Diamond Imprest Authorization Scheme
The Government of India's Department of Commerce has launched the Diamond Imprest Authorization (DIA) Scheme to enhance the global competitiveness of India's diamond sector. This initiative allows duty-free import of Natural Cut and Polished Diamonds under 1/4 Carat (25 Cents) with a mandatory export obligation and 10% value addition.
Eligibility and Benefits
Diamond exporters with Two Star Export House status and annual exports of USD 15 Million or more can benefit from this scheme. It aims to retain India's leadership in the diamond industry by providing a level playing field for Indian exporters, especially MSMEs, to compete with larger companies.
Global Context and Employment
The scheme responds to beneficiation policies in diamond mining countries like Botswana and Namibia, where manufacturers must add value locally. It seeks to prevent investment flight to these destinations and is expected to create jobs, particularly for diamond assorters and in semi-finished diamond processing.
Overall, the scheme supports the domestic diamond processing industry and aims to sustain employment in the sector.
Doubts Revealed
Diamond Imprest Authorization Scheme
This is a new plan by the Indian government to help the diamond industry. It allows certain companies to bring in small diamonds from other countries without paying extra taxes, as long as they add value and export them.
Duty-free import
This means bringing goods into the country without having to pay the usual taxes or fees. In this case, it applies to small diamonds.
10% value addition export obligation
This means that the companies must increase the value of the diamonds by at least 10% before they export them. This could be through cutting, polishing, or other processes.
Two Star Export House
This is a recognition given to companies in India that have achieved a certain level of exports. It shows that the company is experienced and successful in exporting goods.
USD 15 Million annual exports
This means that the company must have exported goods worth at least 15 million US dollars in one year to be eligible for the scheme.
MSMEs
MSMEs stand for Micro, Small, and Medium Enterprises. These are smaller businesses that are important for the economy because they create jobs and support local communities.
Investment flight
This refers to money or resources leaving the country to be invested elsewhere. The scheme aims to keep investments in India to support the local diamond industry.
Your email address will not be published. Required fields are marked *