India set to become rough diamond trading hub

The central government in the recently announced foreign trade policy (FTP) has mentioned a decision regarding the SNZs at Mumbai and Surat, says a report.

The policy document released by commerce minister Nirmala Sitharaman notes, "SNZs for consignment import and export of rough diamonds will have in place the regulatory framework and taxation regime necessary to encourage international mining companies to sell their rough diamonds directly in India. This will give the Indian diamond industry a strong competitive advantage over other diamond trading centres of the world and also ensure a steady supply of rough diamonds in India."

The FTP has also appointed the Gems and Jewellery Export Promotion Council (GJEPC) as the nodal authority for scrutinizing the applications for enlisting laboratories for export of cut and polished diamonds for certification, grading and re-import. It also announced the inclusion of Indian Diamond Institute and International Institute of Diamond Grading &Research (IIDGR) India Private Ltd at Surat under the list of agencies for the purpose, adds a report.

The SNZ will be a boost to the small and medium diamantaires as it will curb the menace of middlemen operating in other centres and charging hefty premiums on the purchase of rough diamonds.