The Indian government has proposed a 15-year income-tax exemption for eligible foreign companies selling rough diamonds through Special Notified Zones (SNZs), under the Taxation and Other Laws (Amendment) Bill, 2026.
The proposal covers overseas diamond mining companies, brokers, aggregators, tender and auction operators, and sightholders. The exemption is proposed to apply from October 1, 2026, to March 31, 2041, subject to approval by Parliament’s upper house and presidential assent.
Eligible sales would have to be conducted within notified zones, including facilities at Mumbai’s Bharat Diamond Bourse and Surat Diamond Bourse. The rough diamonds would also need to meet the statutory definition and carry a Kimberley Process Certificate.
The proposal is intended to strengthen India’s position as a rough diamond trading centre and reduce the need for suppliers to display rough in India before moving sales to overseas centres such as Dubai or Antwerp.
Sabyasachi Ray, executive director of the Gem & Jewellery Export Promotion Council, said the council had sought the measure to enable smaller diamond manufacturers to buy rough directly from mining companies, auctioneers and traders. He said the council expects the measure to support India’s development as a rough-diamond trading centre.
The proposed exemption follows India’s safe-harbour framework introduced two years ago for overseas mining companies selling unsorted rough diamonds through SNZs. Under that system, a fixed 4% profit margin was used for tax purposes.
