India Hikes Import Levy On Cut And Polished Diamonds

The government of India has raised the import duty on cut and polished diamonds, semi-processed, half cut or broken diamonds, lab-grown stones and processed colored gemstones to 7.5 percent from 5 percent.

The move was aimed at attempting to reduce India's current account deficit, the government said.

Gem and Jewellery Export Promotion Council (GJEPC) Chairman Pramod Kumar Agrawal said the huge Indian diamond and gemstone manufacturing and jewelry industries would be hit by the tax increases.

A large volume of cut and polished diamonds, both loose and set in jewelry, are imported for re-setting in new designs, he said.

The tax hikes would give an advantage to the country's main competitors.

The GJEPC would convey its concerns to the government in a bid to reduce the impact on its diamond, gemstone and jewelry exports.

 India exported around $23 billion of cut and polished diamonds in the last fiscal year, and close to $10 billion worth of plain and precious stone set jewelry.