The Gem & Jewellery Export Promotion Council (GJEPC) has endorsed a new tax reform measure designed to bolster India’s standing in the worldwide rough diamond market. On August 17, representatives from the industry association held discussions with Finance Minister Nirmala Sitharaman regarding the Taxation and Other Laws (Amendment) Bill, 2026. This legislation introduces a full income-tax exemption on income earned by eligible foreign companies from the sale of rough diamonds through India’s Special Notified Zones (SNZs).
Participants covered by the exemption include mining companies, sightholders, brokers, aggregators, and organizations involved in diamond tenders and auction platforms. The relief will take effect on October 1, 2026, and remain valid until March 31, 2041, offering foreign businesses a 15-year period of tax stability when operating within these designated zones.
India currently holds the top position globally as the primary destination for diamond cutting and polishing. The new tax policy seeks to establish the country as a leading center for rough diamond trading as well. By reducing tax uncertainty, the reform is expected to draw more international companies to execute transactions directly in India, thereby strengthening the nation’s influence over the global diamond supply network.
The GJEPC has advocated greater tax certainty for overseas rough diamond traders for several years. The 15-year exemption represents a significant advancement in their efforts to attract international traders and create additional opportunities within India’s gems and jewellery sector. The council extended an invitation to Sitharaman to participate in the forthcoming India Gems & Jewellery Awards event.
Though India maintains its dominant role in diamond processing, this new framework could redirect a greater share of rough diamond trading activity to the country. The measure reinforces India’s goal of becoming a full global hub for both diamond manufacturing and commerce.
