India's Diamond Industry Suffers as Import Tax On Polished Rises

The Indian diamond industry will have to adjust to higher taxes after the government announced a rise in import taxes on polished diamonds to 5% from 2.5%.

The tax will be on natural and laboratory-grown polished diamonds and colored gemstones.

Gem & Jewellery Export Promotion Council (GJEPC) Chairman Pramod Agarwal said “This move hampers India’s chances of becoming an international diamond trading hub. It doesn’t provide India with a level playing field vis-à-vis other peers such as Belgium, Dubai and Israel.