The lower house of the Indian Parliament has passed a bill providing a 15-year income tax exemption for certain foreign companies. Those selling eligible diamonds through designated zones in Mumbai and Surat will qualify for the exemption.
If approved by the upper house and the president, the exemption will be effective from October 1, 2026, to March 31, 2041.
This measure aims to make India more attractive as a global diamond trading hub, and challenge the dominance of Dubai and Antwerp in the sector.
Exempt companies could include foreign diamond miners, sightholders, brokers, aggregators, and tender or auction organizations involved in the diamond trade.
If adopted, the measure could help Indian diamond cutting and polishing companies, especially small and medium-sized businesses, gain faster and more direct access to rough diamonds from mining companies and sightholders.
It could also encourage more suppliers, tender and auction houses to operate in India, potentially reducing travel and intermediary costs and procurement cycles.
The bill does not provide for a general tax exemption for Indian diamond cutters and polishers, jewelry manufacturers, or retailers.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
