The Indian government has removed the tariff on the import of seeds used to manufacture lab-grown diamonds and has reduced duties on certain precious metals.
Importers are now exempt from paying customs fees when bringing in seeds used to create rough synthetic diamonds, according to the union budget Finance Minister Nirmala Sitharaman issued Saturday.
“The removal of this condition until March 2026 will provide a major boost to the lab-grown diamond manufacturing sector,” Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC) told Rapaport News.
Shah also applauded the government’s stance on certain precious metals. India lowered the tax on “articles of jewelry and parts thereof” as well as “articles of goldsmiths’ or silversmiths’ wares and parts thereof” to 20% from its previous 25%. It also reduced the duty on platinum to 6.4% from 25%.
“The government’s stable approach on duties and levies across gem and jewelry products will enhance ease of doing business,” Shah explained. “It will enable consumers to get a new product and increase affordable jewelry sales.”
However, the GJEPC has reiterated the need for government support and funding for diamond promotion campaigns, as well as prioritizing jewelry parks. It would also like the government to create a fund to develop a gem bourse in Jaipur.
“GJEPC urges the government to align regulations with global benchmarks, to set up a policy that promotes exports, innovation, use of technology and incentivizes sustainable practices,” Shah added.
Image: A lab-grown diamond seed in tweezers. (LakeDiamond)
Source : Rapaport
