Surat Diamond Bourse (SDB) Chairman and Rajya Sabha Member Govind Dholakia met Union Finance Minister Nirmala Sitharaman following the passage of the Taxation and Other Laws (Amendment) Bill, 2026, to convey the diamond industry’s appreciation for the measure.

The legislation provides a 15-year income-tax exemption, effective until March 31, 2041, for eligible foreign mining companies, sightholders, brokers, aggregators and auction entities undertaking rough diamond sales through India’s Special Notified Zones (SNZs).

The policy addresses a long-standing requirement of India’s diamond trade by enabling eligible overseas suppliers to conduct rough diamond transactions within the country. Until now, while rough diamonds could be displayed in India, transactions were largely completed through international trading centres such as Dubai and Antwerp.

Dholakia conveyed the industry’s gratitude to Sitharaman and the Central Government for introducing the measure. He said the policy would strengthen India’s competitiveness in the global diamond trade.

For Surat, the decision has particular significance given the city’s established role in diamond cutting and polishing. The introduction of a framework for domestic rough trading could bring a greater share of the trading activity closer to India’s manufacturing centres.

Industry participants expect the measure to improve access to rough diamond supply and reduce procurement timelines. It is also expected to support greater trading activity through the Surat and Mumbai SNZs.

The reform could have wider implications for India’s diamond value chain, including manufacturing, exports, investment and employment, as overseas suppliers gain a tax framework for conducting eligible rough diamond sales within India.

The 15-year exemption provides a defined policy window through March 2041, giving international mining companies, sightholders and other eligible entities a longer-term framework for considering India as a rough diamond trading destination.