Namibia, India Explore Direct Diamond Trade Post-Tax Reform
A Namibian delegation led by Deputy Minister Gaudentia Krohne of the Ministry of Industries, Mines and Energy visited India’s diamond industry hub on 11 August. The group, which included diamond officials and an honorary consul, sought to expand direct trade ties following a major tax policy change in India. Their discussions focused on strengthening cooperation between the two nations in the diamond sector.
Tax Reform Opens New Trading Pathways
India’s recent tax reform introduces a 15-year exemption from income tax on rough diamond sales processed through Special Notified Zones (SNZs) at the Bharat Diamond Bourse (BDB) and Surat Diamond Bourse. The Taxation and Other Laws (Amendment) Bill, 2026, outlines this exemption for transactions conducted from 1 October 2026 to 31 March 2041. The policy applies to foreign mining firms, sightholders, brokers, and auction entities, offering long-term financial stability for international participants.
This change positions India as a key destination for global rough diamond trading, providing producer nations with predictable tax conditions. Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said, “Namibia produces the world’s highest-value rough diamonds, while India cuts and polishes 14 out of every 15 diamonds globally. With the proposed 15-year tax exemption for Special Notified Zones, India can now offer producer nations not just manufacturing, but a global trading hub. We look forward to building a lasting partnership with Namibia.”
Namibia’s Diamond Industry at a Glance
Namibia stands as the fifth-largest diamond producer by value in 2025, contributing roughly 8% of the world’s rough diamond output in both volume and value. According to Kimberley Process data, the country mined 2.09 million carats worth US$721.4 million last year, achieving an average production value of US$343.88 per carat—the highest among all diamond-producing nations.
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The delegation highlighted Namibia’s emphasis on quality over quantity. “Namibia is having the best quality of diamonds in the world. We do not have the quantity, but we have the best quality. That’s why I am really proud to come from Namibia and talk about the Namibian diamonds in India,” Deputy Minister Krohne stated. In 2025, Namibia exported 2.04 million carats valued at US$578.4 million, reinforcing its standing in international markets.
Infrastructure and Trade Prospects
Anoop Mehta, convener of GJEPC’s Diamond Panel, proposed that Namibia leverage India’s SNZs for direct trading. This would allow Indian micro, small, and medium enterprises (MSMEs) to access high-quality rough diamonds without needing to travel abroad. “We have invited Namibia to bring its rough diamonds to India and utilise the new tax framework for trading through the Special Notified Zones.
We are exploring this opportunity closely and, if the discussions progress, we would be happy to work towards an MoU with Namibia. We are very positive that, with this new policy, a greater share of Namibia’s diamond trade can come directly to India.” The delegation was welcomed by Anoop Mehta, Convener, Diamond Panel, GJEPC; Ashish Borda & Bharat Ghori, both Members, Diamond Panel, GJEPC; and Mr. Sabyasachi Ray, Executive Director, GJEPC. The visit has come at a significant moment for India’s diamond trade.
India’s role as the world’s top rough diamond importer in 2025, importing 106.09 million carats worth US$11.07 billion, further supports the case for deeper cooperation. The tax exemption could encourage Namibia to redirect a larger portion of its diamond trade through India’s SNZs, taking advantage of the country’s manufacturing capacity and market infrastructure.
