India is the global diamond trading hub!

For a long, India has been aspiring to attain the global stature of Diamond Trading Hub! Previously, India was struggling to source a regular supply of rough diamonds! At the time, Chairman-GJEPC Sanjay Kothari had initiated the Mines to Market- International Diamond Conference! GJEPC convinced the global mining players to supply rough diamonds directly to India for the healthy & smooth running of the diamond pipeline because India is manufacturing 9 out of 10 rough diamonds that are mined globally!

Soon, the equations kept changing, and at the third edition of Mines to Market, India improved and manufactured 11 diamonds out of every 12 diamonds ever mined in the globe. In the meantime, India remained the undisputed diamond leader in the globe, and that groomed the vision to become a Global Diamond Trading Hub!

All those previous chapters were opened just with the statement of the recent past Chairman, Gem, and Jewellery Export Promotion Council (GJEPC) Vipul Shah. The GJ Industry & Trade veteran media player had asked a question about The India Diamond Trading Centre (IDTC) – Special Notified Zone (SNZ) and to commence a diamond trading activity from IDTC-SNZ at Bharat Diamond Bourse.

Vipul Shah said that virtually all those required steps were taken long ago, and now we are communicating with the officials of the Government of India. As soon as the government replies to our FAQs, the IDTC-SNZ will be operative for the diamond trade.

According to the notification, Safe Harbour says, ‘the income-tax authorities shall accept the option for safe harbor 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 by the circumstances as specified in sub-rule (2) unless such safe harbor 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.’

Keeping IDTC-SNZ’s mission—contributing positively to the diamond industry and making India a global diamond trading hub—in mind, upon talking with the trusted sources of the diamond industry and trade, GJ Town India was informed 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 a few questions from the diamond mining players, and we have forwarded to the union government the detailed clarification for the smooth running of the rough diamond trading from the IDTC-SNZ. I think this will be announced sooner.”

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

The project is the outcome of the vision of the Honourable Prime Minister of India, Shri Narendra Modi. In 2014, he conveyed the vision, and in response, BDB created 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 20 December 2015.

Bottom Line:

Even at the end of the first year, IDTC-SNZ Chairman & BDB President Anoop Mehta said, “The success of IDTC reflects our constant endeavor to give global mining companies an appropriate platform to display their goods. We are inviting more Diamond Mining companies to come and use the facility to exhibit their rough diamonds. We urge Indian companies to use this opportunity, which is comparable to any global platform.”

The IDTC’s yearly report 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 the global diamond trade, and India contributes 70 percent by value and 80 percent by global trade volume.” In the row, being a trading hub, sooner or later, India will handle 92% by volume and 80% by value at the Hub!

Now, setting up FAQs is the real way to end operative questions. It is also important to understand the rough diamond mining players. Probably, all those tiny points will be sorted out sooner, and India will be more competitive among the other global diamond centers.

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