The new Diamond Imprest Authorisation (DIA) scheme, set to take effect from 1 April, aims to strengthen the competitiveness of small and medium-sized diamond manufacturers.

According to the Ministry of Commerce and Industry, the scheme is a strategic move to counter beneficiation policies adopted by diamond-producing nations like Botswana, Namibia, and Angola. These countries mandate local processing of a portion of rough diamonds, enabling them to capture more of the industry's value chain, often at the expense of India's traditional dominance.

"The scheme is designed to create a level playing field for Indian diamond exporters, particularly those in the MSME sector, helping them compete more effectively with larger players," the ministry stated.

Eligibility for the DIA scheme is restricted to manufacturers holding Two Star Export House status or higher, which requires a minimum annual export turnover of $15 million. Participants must ensure at least a 10 percent value addition to the diamonds, encouraging domestic processing rather than merely re-exporting imported goods.

The Gems and Jewellery Export Promotion Council (GJEPC), which played a pivotal role in advocating for the scheme, expressed strong support for the government's decision.

Vipul Shah, Chairman of the GJEPC, praised the move, stating, "We extend our sincere thanks to the Ministry of Commerce for this significant step, which will boost MSME exporters, protect jobs, and reinforce India’s leadership in the global diamond value chain."

The DIA initiative is expected to offer Indian manufacturers a much-needed edge, supporting growth in exports while promoting local craftsmanship in the highly competitive global diamond industry.