Surat's Diamond Sector Celebrates 15-Year Tax Exemption - Govindkaka Conveys Gratitude to Central Govt.

The Indian diamond industry has welcomed the passage of the Taxation and Other Laws (Amendment) Bill, 2026 in the Rajya Sabha, describing it as a landmark reform that will strengthen India's position in the global diamond trade. The Bill grants a 15-year income tax exemption, effective until March 31, 2041, for eligible foreign mining companies, sightholders, brokers, aggregators, and auction entities undertaking rough diamond sales through India's Special Notified Zones (SNZs) like Surat and Mumbai.

The announcement holds special significance for Surat, the Diamond Capital of the World, where nearly 90% of the world's diamonds are crafted and polished. For decades, Surat has been the backbone of the global diamond manufacturing industry, transforming rough diamonds sourced from across the world into brilliant polished gems. This reform is expected to further elevate Surat's role by bringing a larger share of global rough diamond trading activities closer to the manufacturing hub itself.

Until now, while rough diamonds could be showcased in India, the actual transactions were largely conducted through international trading centres such as Dubai, Antwerp. With this amendment, eligible entities will be able to undertake rough diamond sales within India, creating a more efficient, transparent, and globally competitive trading ecosystem.

Industry leaders believe the move will help reduce procurement timelines, improve access to rough diamond supply, increase trading activity, and further strengthen India's role across the diamond value chain. The policy is also expected to support the growth of Surat and Mumbai as globally recognized rough diamond trading centers and contribute to higher exports, investments, and employment opportunities for the sector.

Marking this historic development, Govind Dholakia, Hon'ble Member of Parliament (Rajya Sabha) and Chairman of the Surat Diamond Bourse (SDB), met with Union Finance Minister Nirmala Sitharaman to convey the gratitude of the entire diamond fraternity. He expressed appreciation to the Government of India for introducing a progressive policy that addresses a long-standing industry requirement and enhances India's competitiveness in the global diamond trade.