Commerce and Industry Minister Piyush Goyal has announced the reinstatement of the Diamond Imprest Licence, a pivotal policy designed to boost India’s diamond export industry. The announcement was made at the prestigious India International Jewellery Show (IIJS) 2024, under the aegis of the Gem and Jewellery Export Promotion Council (GJEPC).
The Diamond Imprest Licence, crucial for duty-free importation of cut and polished diamonds up to a specific threshold, aims to elevate India’s global positioning within the gems and jewellery sector. Exporters, now authorized to import cut, polished, and semi-processed diamonds—restricted to 5% of their average turnover over the past three years—must add 10% value to these imports, ensuring exclusivity for the importer’s use post-export.
The absence of this licence had diverted diamond processing to international hubs like Dubai, eroding India’s export volumes and sectoral employment. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), highlighted challenges posed by countries mandating the processing of rough diamonds before export, such as South Africa, Namibia, and Tanzania. Processed diamonds entering India face a 5% Basic Customs Duty, diluting the competitiveness of Indian exports. The restored Diamond Imprest Licence now neutralizes these competitive pressures by facilitating duty-free imports.
Originally integrated into India’s foreign trade policy in 2002 and 2009, the Diamond Imprest Licence now returns as a strategic tool to reinforce the global stature of India’s gems and jewellery sector. By enabling duty-free imports, this policy intends to strengthen India’s market share and influence on the global stage.
including significant reductions in gold and silver import duties, which are set to drive further expansion within the jewellery sector. These reductions are anticipated to channel more gold imports through regulated avenues, subsequently generating more employment opportunities.
Goyal announced the creation of a Common Facility Centre within a special economic zone, dedicated to training 1,500 young professionals annually. This initiative aligns with the broader strategy to develop a highly skilled workforce attuned to the demands of the global market. The centre, already training 300 physically challenged youths, including women, ensures that workforce development remains inclusive. These trainees are poised to secure placements across 10,000 GJEPC members, bolstering the sector’s talent pool.
Facing global economic headwinds, Goyal encouraged gem and jewellery exporters to remain resolute, expressing confidence in India’s expanding domestic market, which is projected to offset downturns in export figures. The reintroduction of the Diamond Imprest Licence, alongside other strategic measures, forms a cornerstone in preserving and advancing India’s leadership within the global diamond industry.
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