Description

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Picture Courtesy: The Hindu

Context:

The Government has introduced a Diamond Imprest Authorisation (DIA) scheme to allow duty-free import of natural cut and polished diamonds for export purposes.

About the Diamond Imprest Authorisation (DIA) Scheme

It is an initiative introduced by the Department of Commerce, Ministry of Commerce & Industry.

It allows the duty-free import of natural cut and polished diamonds (less than ¼ carat or 25 cents) for export purposes.

It mandates an export obligation with a value addition of 10% on the imported diamonds.

It aims to boost India’s diamond exports and will be implemented from April 1, 2025.

Why was the DIA Scheme introduced?

It was introduced to address the declining exports and job losses in the diamond industry.

It ensures that Indian diamantaires remain competitive globally by leveling the playing field for exporters, especially MSMEs.

It aims to boost India’s global competitiveness in the diamond industry by addressing the decline in exports and job losses, while retaining India’s position as a global leader in the diamond value chain.

Who is eligible?

Diamond exporters who meet the following criteria can benefit from the scheme:

Hold Two Star Export House status or higher.
Have annual exports worth $15 million or more.

Expected outcomes

Retain India’s position as a global leader in the diamond value chain.
Prevent investments from moving to diamond-mining countries.
Generate employment opportunities, particularly for diamond assorters and workers in polishing and processing factories.
Creates a level playing field for MSMEs, allowing smaller diamond exporters to compete effectively with larger industry players.

Must Read Articles:

DIAMOND IMPREST LICENCE

LAB GROWN DIAMONDS

Source:

THE HINDU

PRACTICE QUESTION

Q. Consider the following statements.:

1. Lab-grown diamonds result in concerns about potential labor exploitation.

2. Diamonds are good conductors of electricity.

3. Diamonds are soluble in water.

How many of the above statements are correct?

A) Only one

B) Only two

C) All three

D) None

Answer: D

Explanation:

Statement 1 is incorrect:

Lab-grown diamonds are significantly cheaper than mined diamonds due to the faster production process and reduced mining costs. By eliminating the need for diamond mining, lab-grown diamonds address concerns about environmental impact and potential labor exploitation in mining operations.

Statement 2 is incorrect:

Diamonds are considered poor conductors of electricity because their structure lacks free electrons, which are necessary for electrical current to flow through a material.

Statement 3 is incorrect:

diamonds are insoluble in water; this is because the strong covalent bonds between carbon atoms in a diamond structure are too strong for water molecules to break and dissolve it.