“This will provide level-playing field for Indian MSME diamond exporters. It will stop flight of investment and also introduce more employment opportunities,” said a GJEPC member.

The licence allows eligible exporters to import cut and polished diamonds, including semi-processed, half-cut, and broken diamonds.

Exporters can import diamonds up to 5 per cent of their average turnover from the past three years, with a requirement to add 10 per cent value.

These imports must be used by the importer and cannot be transferred, even after exports are completed, according to an expert.Explaining the reason behind this, GTRI founder Ajay Srivastava said that some countries like South Africa, Namibia and Tanzania require rough diamonds to be cut or processed before export.

“When these diamonds are imported into India, they are classified as cut and polished diamonds and face a 5 per cent Basic Customs Duty, making India’s diamond exports less competitive compared to countries like China, Vietnam, and Sri Lanka. Now this licence will help import duty free,” Srivastava said.

This licence was earlier there in the foreign trade policy of 2002 and 2009.

Speaking about Antwerp in Belgium, Goyal said, “We are hoping that Mumbai or Surat can have a centre similar to the one in Antwerp. Antwerp is home to all major diamond mining companies, which source diamonds for thousands of diamond dealers across the globe.