MUMBAI — The Central Government has introduced the Diamond Imprest Licence, a long-awaited policy initiative championed by the Gem & Jewellery Export Promotion Council (GJEPC). Union Commerce and Industry Minister Piyush Goyal announced the new policy during an interactive session at the 40th India International Jewellery Show 2024, held at the Bombay Exhibition Centre in Mumbai.
The Diamond Imprest Licence will allow Indian diamond exporters, who meet a certain export turnover threshold, to import up to 5% of their average export turnover from the preceding three years. This move aims to create a level playing field for Indian MSME diamond exporters, helping them compete with larger companies. The licence is expected to curb the outflow of investment by Indian diamantaires to diamond-mining destinations and increase employment opportunities in diamond sorting and processing within the country.
Minister Goyal also highlighted the Union Budget 2024-25, which reduced duty rates on gold, silver, and platinum—a move designed to support the gem and jewellery industry’s growth and job creation. “Gold and jewellery will increasingly come through official channels, and our workforce will benefit from job orders,” Goyal stated, emphasizing India’s strong and growing domestic market, which is expected to offset export losses due to the global recession.
The Minister also mentioned India’s ongoing negotiations with G7 nations, noting that this is the first time India is negotiating from a position of strength. “We are having extensive discussions with EU Ministers and Commissioners on issues like transparency, data protection, and costs,” Goyal said.
Goyal also expressed hope that Mumbai or Surat could develop a diamond trading center similar to the one in Antwerp. He added that India is working with De Beers and the Kimberley Process to develop a system for segregating and tracing the origins of diamonds, although no technical mechanism or protocol is currently in place.
The announcement was attended by several key figures, including Vipul Shah, Chairman of GJEPC; Kirit Bhansali, Vice Chairman of GJEPC; Siddharth Mahajan, Joint Secretary, Ministry of Commerce and Industry; and other senior officials from the industry, according to a press statement.