India’s diamond import drops 16 percent post duty hike

By

Maverick Martins

Published
Mar 27, 2018

India’s diamond imports has been drastically hit and dropped 16 percent due to government’s policy decision to double the import duty on cut and polished diamonds from 2.5% to 5%.
 

The problems for the diamond industry in India continue to be mounting every day and the industry is fearful that the higher import duty may give an edge to other competitors.
 
The local diamond trade in India has already taken a beating post the alleged Punjab National Bank (PNB) fraud involving diamantaire Nirav Modi with business dropping 15 percent due to concerns of purity, according to a recent survey by industry body Assocham.

Gems and Jewellery Export Promotion Council (GJEPC) data revealed that the import of polished diamonds from April 2017 to February 2018 decreased almost 17%. The value of import was Rs 1,000 crore (approx $ 154.2 million) in February 18 compared to Rs 1,250 crore (approx $192.8 million) during the same month last year.

GJEPC fears that the decision to hike import duty will give an edge to competitors like Belgium, Dubai and Israel over India. It wants the government to look into their problems and urged the finance ministry to revise the import duty.
 
Talking to Times of India, GJEPC’s regional chairman, Dinesh Navadiya said, “The council is continuously in touch with the finance ministry and other departments to revise the decision on increasing import duty on cut and polished diamonds. We had supported the central government’s decision on imposing 2.5% duty on diamonds to stop round tripping. In past few years, the round tripping has completely stopped and diamonds imported in the country are of the jewellery sold by the Americans.”