Recently on 9th December, the Indian government, through the Directorate General of Foreign Trade (DGFT), issued Notification No. 49/2025-26, amending Para 4.63 of the Foreign Trade Policy (FTP) 2023, with immediate effect. This amendment brings significant tax benefits for imports made under DIA (Diamond Imprest Authorisation) scheme — a key trade facilitation provision for the diamond and gems sector.
What is DIA - The Diamond Imprest Authorisation (DIA) is a scheme under Foreign Trade Policy of 2023 that allows eligible diamond exporters to import rough and cut & polished diamonds, raw materials, and inputs without paying certain duties after meeting the required criteria. This policy is designed to support the Indian merchants in gems & jewellery industry.
Before 9th December, the imports under DIA was exempted from:
Basic Customs Duty
Additional Customs Duty
Education Cess
Anti-dumping Duty
Countervailing Duty
Safeguard Duty
Transition Product-Specific Safeguard Duty
However, Integrated Goods and Services Tax (IGST) and Compensation Cess was applicable
The amendment now removes IGST and compensation cess also. Now these charges will not be applicable for imports.
How USA tariff has impacted Indian diamond market and how this notification will support the Indian Diamond industry.
After Donald Trump took the presidency – USA imposed 50% tariff on diamond imports from India.
In FY 23- 24 the Indian Gems and Jewellery industry was approx. 33 billion USD and approx. 30% to 35% of this was going to USA.
After tariff imposition the USA market share has been impacted and India government is supporting the Indian Gems and Jewellery industry by lowering imports cost, increasing liquidity within the industry giving them better competitiveness in other global markets.
(Above is an AI generated image)
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