Budget 2024: Game Changer For Indian Diamond Industry

In India, there is a very positive reaction to the Budget 2024 announcement by Finance Minister Nirmala Sitharaman.

This announcement is very important for the Indian diamond industry. It includes the abolition of the 2% equalization levy on rough diamond imports and the establishment of Special Economic and Notified Zones, which allows foreign diamond-producing companies to sell their diamonds directly to the diamond-cutting and manufacturing entities in India.

GJEPC, India's Apex trade body for gems and jewelry, sees the simplifying taxation rules and the abolition of the equalization levy for bidding of rough diamonds online by its diamond manufacturers as a true game changer. According to GJEPC, this decision will provide a leadership position to the Indian diamond industry because all foreign mining companies will now trade rough diamonds directly to the diamond cutting and manufacturing entities in India and it will place India on equal footing with other big market hubs like Belgium and Dubai.

The Finance Minister also noted the reduction in customs duty on gold and silver from 15% to 6%, which is expected to significantly benefit the jewelry industry.

Picture Credits: Morphogenesis