In a well-documented article published on his platform, The Diamond Press, industry expert Avi Krawitz analyzes the changing structure of the diamond trade and the impact of legislation recently adopted in India. By introducing a full 15-year tax exemption — from October 1, 2026 to March 31, 2041 — for foreign companies trading rough diamonds through the country’s Special Notified Zones (SNZs), New Delhi could significantly reshape the geography of the diamond trade.
Historically, each major diamond center had a specific role within the value chain. Diamonds passed through several intermediaries before reaching the end customer. Antwerp played a central role thanks to its long history and expertise. Dubai established itself as a major hub for sorting, trading and distribution, particularly between Africa and Asia. Intermediaries and traders were an essential part of this structure. Today, the market is being reshaped, with each player seeking to shorten supply chains in order to strengthen vertical integration and gain greater control over supply, margins and market access.
Within this changing landscape, India has taken a decisive step toward strengthening its position in the global diamond value chain. While it remains the world’s leading diamond cutting and polishing center, processing around 80% to 85% of the world’s diamonds, it has never managed to capture an equivalent share of global trade flows. Tax constraints imposed on foreign companies, together with historical and strategic factors, have effectively favored the emergence of other hubs, most notably Dubai, Antwerp, Gaborone and other African platforms located close to producing regions, as part of beneficiation or local processing policies.
The stakes are also economic, as conditions in India have deteriorated significantly. Indian rough diamond imports fell from $18.5 billion in 2022 to $11.1 billion in 2025, a 40% decline. Over the first seven months of 2026, they fell by a further 25%. Polished diamond exports followed the same trajectory, declining by 46% between 2022 and 2025. These figures illustrate the difficulties facing the global diamond sector, which is contending with several challenges at once: weak demand, high inventory levels, the growth of synthetic diamonds, and a trading structure in which India still relies heavily on foreign intermediaries.
The new legislation will apply to mining companies, sightholders, brokers, and tender and auction operators. By removing the tax barrier facing foreign companies, New Delhi is seeking to attract rough diamond holders to Mumbai and Surat, the centers of India’s diamond industry, while also bringing producers closer to manufacturing and reducing sourcing costs and lead times.
Already the world’s leading cutting and polishing center, could India also become a major trading hub, gaining greater influence over pricing and distribution? It is a development worth watching — and one that could significantly reshape the geography of the diamond trade.
Read the full article on The Diamond Press HERE.
Image: Diamond examination