In order to develop India’s financial capital Mumbai as a rival to Antwerp and Dubai in Diamond trading, the government is discussing a plan to set up a special zone with tax benefits for diamond import and trading in the city.
Commerce & industry minister Nirmala Sitharaman held preliminary discussions to work out a possible road map.
Gems & Jewelry Export Promotion Council's (GJEPC) estimates suggest that in volume terms, 85 per cent of the global cutting work takes place in India. At the same time, around 15 per cent rough diamond is imported directly from the producing countries, while a majority is shipped in from the trading hubs.
Analysts said the move may help check China's growing influence in the area as some Chinese companies had started acquiring shares in mines in Africa and are also pursuing direct deals with governments there for the supply of rough diamonds.
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