A Namibian delegation led by Gaudentia Krohne, Deputy Minister of Industries, Mines and Energy, visited India last week to explore direct diamond trade ties, timed with a new tax incentive for rough diamond sales in the country. The visit, held on August 11, included stops at the Gujarat International Finance Tec-City (GJEPC), the Bharat Diamond Bourse (BDB), and the Indian Diamond Trading Centre (IDTC), along with customs facilities.
India’s New Tax Incentive Opens Doors for Namibia’s High-Value Diamonds
The delegation’s trip coincides with India’s push to become a global hub for rough diamond trading. The government’s Taxation and Other Laws (Amendment) Bill, 2026 proposes a 15-year tax exemption on income from rough diamond sales through Special Notified Zones (SNZs) at the BDB and Surat Diamond Bourse. The exemption, set to take effect from October 1, 2026, applies to foreign mining firms, sightholders, brokers, and trading entities.
Namibia’s diamonds are among the world’s most valuable. In 2025, the country produced 2.09 million carats worth $721.4 million, with an average value of $343.88 per carat—the highest per-carat value globally. Namibia ranked fifth in global diamond production by value and accounted for roughly 8% of worldwide rough diamond output, both by volume and value.
Krohne emphasized Namibia’s focus on quality over quantity. “Namibia is having the best quality of diamonds in the world,” she said. “We don’t have the quantity, but we have the best quality. That’s why I am really proud to come from Namibia and talk about the Namibian diamonds in India.”
The new tax framework could streamline Namibia’s access to India’s diamond ecosystem. Currently, India imports 106.09 million carats of rough diamonds annually, valued at $11.07 billion, making it the world’s largest market for uncut gems. The SNZs offer a tax-free environment, reducing costs for international traders and manufacturers.
India’s Diamond Hub Ambitions Accelerate
Shri Kirit Bhansali, Chairman of GJEPC, highlighted India’s dominance in diamond processing while noting the potential for increased direct trade. “Namibia produces the world’s highest-value rough diamonds, while India cuts and polishes 14 out of every 15 diamonds globally. With the proposed 15-year tax exemption for Special Notified Zones, India can now offer producer nations not just manufacturing, but a global trading hub.”
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The delegation saw potential in leveraging India’s diamond trading infrastructure. “We can bring our diamonds here, showcase them here, and even sell them,” Krohne said. “If this platform created by India is already being used by other countries, why can Namibia not make use of it too?”
Anoop Mehta, Convener of the Diamond Panel at GJEPC, expressed optimism about the new policy. “We look forward to building a lasting partnership with Namibia,” he said. “We have invited Namibia to bring its rough diamonds to India and utilise the new tax framework for trading through the Special Notified Zones. This will give Indian MSMEs more direct access to high-quality rough diamonds without the need to travel overseas. We are exploring this opportunity closely and, if the discussions progress, we would be happy to work towards an MoU with Namibia. We are very positive that, with this new policy, a greater share of Namibia’s diamond trade can come directly to India.”
The delegation’s focus on India’s diamond ecosystem extended beyond trading. Visits to the BDB and the planned engagement at SEEPZ provided Namibian officials with insights into India’s manufacturing infrastructure, including how businesses integrate into the global supply chain. The IDTC, in particular, was highlighted as a model for connecting international rough diamond suppliers with local manufacturers.
Tax Break Opens Doors for Namibia’s Premium Diamonds
For Namibia, the combination of India’s established diamond market, manufacturing capacity, and the new tax incentives creates a compelling opportunity. The country’s high-value diamonds align with India’s demand for premium rough goods, while the tax exemption reduces financial barriers for both Namibian exporters and Indian buyers.
The visit shows a broader shift in global diamond trade. While traditional hubs like Antwerp and Dubai remain dominant, India’s push to attract direct rough diamond imports reflects a strategic effort to consolidate its role in the supply chain. For Namibia, the potential to sell directly to India’s manufacturing base—without the middlemen—could mean higher margins and more control over pricing.
