Bharat, the global diamond trading hub stature at latch!

Sooner, Bharat to handle diamonds 92% by volume, 80% by value at the Hub! 

Recently, Vipul Shah, Chairman- Gem and Jewellery Export Promotion Council (GJEPC) said Nayan Jani, Editor-GJ Town India, in a question about The India Diamond Trading Centre (IDTC) - Special Notified Zone (SNZ) and to commence a diamond trading from IDTC-SNZ at Bharat Diamond Bourse that, virtually all those required steps are being taken long back & now, we are communicating with the officials of the Government of India. As soon as our FAQs will be replied by the government, the IDTC-SNZ will be operative for the diamond trading.  

It is to say, the project is the outcome of the vision of Honourable Prime Minister of India, Shri Narendra Modi.  In 2014, he had conveyed the vision & in the response, BDB crated the exclusive area as IDTC and the Government designated the IDTC as the SNZ. In a row, Hon'ble Minister of State, Nirmala Sitharaman (Independent charge), Commerce & Industry, Government of India, inaugurated the IDTC-SNZ on 20th December 2015. 

Within a year, India’s only SNZ in those days, Spread across 4,095 sq ft, witnessed by about 28 Diamond viewing sessions with the participation of over 400 companies. IDTC opened up their door for the direct access to rough diamonds for small & medium sized companies (SMEs) that, ensured a wider participation in sourcing rough diamonds.  

Even at the end of the first year, IDTC-SNZ Chairman & BDB President, Anoop Mehta said, “The success of IDTC reflects our constant endeavour to give the global mining companies an appropriate platform to display their goods and we are inviting more Diamond Mining companies to come and avail the facility to exhibit their rough diamonds. 

We urge upon the Indian companies to avail this opportunity that is comparable to any global platform”. The yearly report of the IDTC said, “By volume more than 3 million carats of rough diamonds in excess of USD 450 million dollars have passed through IDTC doors since it started its operations. India handles a major chunk of global diamond trade and 70 per cent by value and 80 per cent by volume of global trade is contributed by India.”

Even after, a well begin, well performed in a year, the IDTC-SNZ remained limited upto viewing. De facto, there were few more steps to start rough diamond trading directly from IDTC. 

Just in the beginning of the 2025, upon meeting Mehul Shah, Director- IDTC & Vice President, BDB said all about 4% levy, which is being notified by the Ministry of Finance, (Department of Revenue)-Central Board of Direct Taxes, by issuing Notification on 29th November, 2024 under the Income-Tax that came into force on the 1st day of April, 2024. Mehul Shah stated about Safe Harbour Rules.  

According to the notification, Safe Harbour that say, ‘he income-tax authorities shall accept the option for safe harbour exercised by an eligible assessee in any relevant previous year under rule 10TIB, where the income declared by such assessee from an eligible business is in accordance with the circumstances as specified in sub-rule (2), unless such safe harbour is declared invalid under the provisions of sub-rule (3) of rule 10TIB.’

‘Selling of raw diamonds referred to in clause (b) of rule 10TI will attract Circumstances that; the profits and gains of the eligible business chargeable to tax under the head, Profits and gains of business or profession- shall be 4 percent or more of the gross receipts from such business.’

By keeping IDTC-SNZ’s mission, on contributing positively to the diamond industry and making India a global diamond trading hub- into mind, upon talking with the trusted sources of the diamond industry & trade informed GJ Town India that, GJEPC has completed all those obligations that ensure rough diamond trading from IDTC-SNZ.  

In the row, upon asking a question; Vipul Shah said, “there are few questions from the diamond mining players and we have forwarded to the union government from the detailed clarification for the smooth running of the rough diamond trading from the IDTC-SNZ. I think, sooner this will be announced.”  

On the other hand, sources said, not only, rough diamond trading from the IDTC-SNZ will start soon but also Bharat will start rough diamond auctions from the IDTC-SNZ.