Import duty on polished diamonds may rise to 5%

The Indian Government plans to raise the import duty on cut and polished diamonds to five percent from the current two percent. The hike in the import duty is being implemented in order to protect the interests of small scale diamond manufacturers as they pose a threat. Gems & Jewelry Export Promotion Council (GJEPC) data show that imports of cut and polished diamonds almost doubled in the first six months of the current fiscal year, hitting domestic manufacturing.

Many units have supposedly shut down due to lack of profit. The raise in duty is expected to be announced soon.