Big Budget Boost for India’s Diamond Industry
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India’s diamond industry is excited about new budget measures announced today. These changes will make it easier and cheaper for foreign companies to sell diamonds directly in India.
Finance Minister Nirmala Sitharaman has introduced “safe harbor” rates, which are fixed and favorable tax rates for buying rough diamonds in India’s Special Notified Zones (SNZs). This simplifies the tax process and removes unexpected costs for foreign suppliers.
Sitharaman also announced significant tax cuts:
- Gold and silver taxes reduced to 6% (down from 15% and 10%)
- Platinum tax reduced to 6.4% (down from 12.5%)
- Diamond sales exempted from a 2% equalization levy, promoting sustainability.
“India is a world leader in diamond cutting and polishing, employing many skilled workers,” said Sitharaman. “These changes will further support this important sector.”
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), praised the government’s decisions, saying they will strengthen India’s leadership in the global gems and jewelry industry by reducing costs and simplifying tax rules.
These changes make India an even more attractive destination for diamond trade, benefiting foreign customers with lower costs and streamlined processes.