Minister of Commerce unveils Task Group report for India to be a leading rough diamond trading hub

A Task Group report with the purpose of making India an international trading destination for rough diamonds was unveiled by Shri. Anand Sharma, Hon’ble Minister of Commerce, The task group on diamonds comprising members from the Indian Government and Industry was constituted by the Minister of Commerce, Industries and Textiles under the Chairmanship of Director General of Foreign Trade, Dr.Anup K. Pujari, keeping in view the slump in India’s diamond exports through the last few quarters.

The report recommendations include: reducing the rate of computation of profit under Benign Assessment Procedure(BAP) from 6 percent to 2.5 percent; 15 percent duty free re-import quota for import of cut and polished diamonds; Special Notified Zone to be set up for import and trading of rough diamonds; establishment of a USD 3-5 billion fund for banks to refinance their dollar loans to the industry; extending the 2 percent interest subvention scheme to the industry, as most diamond manufacturing companies do not fall under the current scheme; continuation of the system of Honorary Valuation Panels for the diamond sector; defining a beneficiation policy for diamonds mined in India; setting up of a Rs 200 crore Technological Upgradation Fund Scheme (TUFS); establishing a fund in partnership with the industry for generic promotion of diamonds and promotion of diamonds and other procedural related suggestions to reduce transaction costs of exports. Commenting on the report, the Hon’ble Minister mentioned that the Indian diamond sector and the Indian government’s consciousness and commitment ‘for clean and responsible diamond trading is really high’, although ‘some mischievous and malicious elements of late have been trying to malign the perception of the Indian Diamond Sector, which the Indian Government will not allow’. He also noted that India is ‘committed to continuing as a responsible and active member of the Kimberley Process Certification System by implementing all its regulations. Very few countries are having such an impeccable record and the world would not have been able to reach less than 1 percent trading of conflict diamonds, if India would not have vouched for the same so steadfastly.”

The recommendation have been placed before the concerned departments of the Government in a time bound manner so as to decrease the transaction cost of exports, simplify the compliance of the trade with taxation authorities and benefit the trade with India’s natural resources. Hon’ble Minister also noted that the Ministry had already issued necessary orders to implement certain pertinent demands of the industry immediately including granting of bonded warehouse facility for diamonds.