The Indian government has removed import duties on seeds used in lab-grown diamond production and lowered tariffs on certain precious metals in a move intended to support the domestic gem and jewellery industry.
Impact on Lab-Grown Diamond Manufacturing
Importers were previously required to pay customs duties on seeds used to create rough synthetic diamonds. The removal of this requirement will remain in effect until March 2026, a move expected to benefit India’s lab-grown diamond sector.
Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), commented on the decision, stating, “The removal of this condition until March 2026 will provide a major boost to the lab-grown diamond manufacturing sector.”
Changes to Precious Metal Duties
In addition to the changes related to lab-grown diamond seeds, the government has adjusted import taxes on various precious metal items. The duty on jewellery articles and parts, as well as goldsmiths’ and silversmiths’ wares, has been reduced from 25% to 20%. The tariff on platinum has also been lowered from 25% to 6.4%.
Shah welcomed the revisions, stating, “The government’s stable approach on duties and levies across gem and jewellery products will enhance ease of doing business. It will enable consumers to get a new product and increase affordable jewellery sales.”
Calls for Further Industry Support
While the duty reductions have been well received, the GJEPC continues to urge the government to provide additional support for the jewellery sector. The council has reiterated the need for funding to promote diamond marketing campaigns, investment in jewellery parks, and the establishment of 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 incentivises sustainable practices,” Shah added.
Industry Implications
The removal of duties on lab-grown diamond seeds is expected to reduce production costs for manufacturers, strengthening India’s role in this segment of the industry.
The reduction in tariffs on jewellery and precious metals may help manufacturers and retailers by lowering costs, potentially making jewellery more competitively priced in both domestic and export markets.
Industry leaders continue to emphasise the need for further collaboration with the government, particularly in areas such as marketing, infrastructure, and regulatory alignment with international standards.
