Daily Current Affairs : 23-January-2025

The Union Government of India has introduced the Diamond Imprest Authorization (DIA) Scheme with the aim of boosting the competitiveness of the Indian diamond industry. This initiative also focuses on increasing exports and protecting employment in the sector. The scheme comes under the Ministry of Commerce & Industry and targets the growth of Micro, Small, and Medium Enterprises (MSMEs) in the diamond export sector.

Key Features of the DIA Scheme

The DIA Scheme has several key elements designed to support Indian diamond exporters:

  • Duty-Free Imports: The scheme allows for the duty-free import of natural cut and polished diamonds weighing less than ¼ carat (25 cents).
  • Export Obligation: Importers under this scheme must fulfill an export obligation of adding at least 10% value to the diamonds before exporting them.
  • Eligibility Criteria: Exporters must hold at least a Two Star Export House status or higher and must have an annual export value of $15 million or more.
  • Focus on MSMEs: One of the main goals is to support MSMEs in the diamond industry by enhancing their ability to compete in international markets.

Goals of the DIA Scheme

The main objectives of the DIA Scheme are:

  • Promoting Value Addition: The scheme encourages exporters to add more value to diamonds, thus enhancing the quality of Indian exports.
  • Boosting Exports: By improving the competitiveness of the diamond sector, the scheme aims to increase the overall exports from India.
  • Generating Employment: The implementation of the DIA Scheme is expected to create jobs, particularly for diamond assorters and semi-finished diamond processors.

Implementation and Monitoring

  • Effective Date: The DIA Scheme will come into effect on April 1, 2025.
  • Monitoring Body: The Gems and Jewellery Export Promotion Council (GJEPC) will oversee the implementation and progress of the scheme.
Important Points:
  • Diamond Imprest Authorization (DIA) Scheme introduced by the Union Government to enhance competitiveness, boost exports, and safeguard employment in the diamond sector.
  • Ministry of Commerce & Industry is responsible for the implementation of the scheme.
  • Key Features:
    • Duty-free import of natural cut and polished diamonds under ¼ carat (25 cents).
    • Exporters must add at least 10% value to the diamonds before exporting.
    • Eligibility: Exporters with Two Star Export House status or higher and a minimum annual export of $15 million.
    • Focus on supporting MSMEs in the diamond industry.
  • Goals of the Scheme:
    • Promote value addition in diamonds.
    • Increase export growth in the diamond sector.
    • Generate employment opportunities for diamond assorters and semi-finished diamond processors.
  • Implementation:
    • The scheme will take effect from April 1, 2025.
    • The Gems and Jewellery Export Promotion Council (GJEPC) will monitor the scheme’s progress.
Why In News

The Union Government has introduced the Diamond Imprest Authorization (DIA) Scheme, aimed at enhancing competitiveness, boosting exports, and safeguarding employment in the sector, while also providing critical support to MSMEs and fostering value addition within the diamond industry.

MCQs about Boosting India’s Diamond Exports:The DIA Scheme
  1. What is the primary goal of the Diamond Imprest Authorization (DIA) Scheme?
    A. To reduce the import of diamonds
    B. To enhance competitiveness and boost exports in the diamond sector
    C. To regulate the pricing of diamonds in India
    D. To restrict diamond trading to specific countries
    Correct Answer: B. To enhance competitiveness and boost exports in the diamond sector
    Explanation: The DIA Scheme is designed to improve the competitiveness of India’s diamond industry, increase exports, and create employment opportunities, particularly in MSMEs within the sector.
  2. Who is eligible to benefit from the DIA Scheme?
    A. Only small-scale exporters
    B. Exporters with Two Star Export House status or higher and an annual export of $15 million or more
    C. Retail diamond sellers
    D. Government-run diamond companies
    Correct Answer: B. Exporters with Two Star Export House status or higher and an annual export of $15 million or more
    Explanation: To be eligible for the scheme, exporters must hold a Two Star Export House status or higher and meet the minimum export requirement of $15 million annually.
  3. Which organization will monitor the implementation of the DIA Scheme?
    A. Ministry of Commerce & Industry
    B. Gems and Jewellery Export Promotion Council (GJEPC)
    C. Federation of Indian Exporters
    D. Diamond Association of India
    Correct Answer: B. Gems and Jewellery Export Promotion Council (GJEPC)
    Explanation: The implementation and monitoring of the DIA Scheme will be carried out by the Gems and Jewellery Export Promotion Council (GJEPC).

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