A delegation from Namibia met with Indian diamond industry leaders on August 11 to discuss direct trade of rough diamonds, a move that could reshape supply chains following a major tax reform in India.
Namibia seeks closer ties with India’s diamond hub
Deputy Minister of Industries, Mines and Energy Gaudentia Krohne led a senior Namibian delegation to Mumbai on August 11 to explore partnerships with India’s diamond sector. Officials from Namibia’s diamond affairs office and its honorary consul in Mumbai accompanied her.
The group toured key facilities, including the Gem & Jewellery Export Promotion Council (GJEPC) office, Bharat Diamond Bourse (BDB), and the Indian Diamond Trading Centre (IDTC). They also inspected customs infrastructure, which officials said would play a key role in any future trade arrangements.
GJEPC chairman Kirit Bhansali described the visit as an opportunity to combine Namibia’s high-value production with India’s processing strength. “Namibia produces the world’s highest-value rough diamonds, while India cuts and polishes 14 out of every 15 diamonds globally,” he stated. “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.”
The timing coincides with India’s recent tax changes. A bill introduced this year proposes a 15-year income-tax exemption on rough diamond sales through Special Notified Zones at BDB and Surat Diamond Bourse. The exemption, set to begin October 1, 2026, would apply to foreign mining companies, sightholders, brokers, and auction entities until March 31, 2041.
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Namibia’s diamond output stands out for its value. In 2025, the country produced 2.09 million carats worth $721.4 million, averaging $343.88 per carat—the highest among major producers. That year, it ranked fifth globally by value, representing 8% of rough diamond production in both volume and value.
Krohne highlighted the quality of her country’s diamonds. “We do not have the quantity, but we have the best quality,” she said. “That’s why I am proud to represent Namibia and discuss these diamonds in India.”
The delegation recognized potential in India’s trading infrastructure. “We can bring our diamonds here, showcase them, and even sell them,” Krohne noted. “If other countries are already using this platform, Namibia should too.”
India’s appeal is straightforward. The country imported 106.09 million carats of rough diamonds in 2025, valued at $11.07 billion. The new tax framework aims to attract more international mining companies and traders by offering long-term stability for operations in India’s Special Notified Zones.
The IDTC platform, which allows Indian MSMEs to access international rough diamonds without traveling abroad, drew particular interest.
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Anoop Mehta, convener of GJEPC’s diamond panel, said Namibia could use the new tax rules to bring rough diamonds directly to India. “This would give Indian MSMEs more direct access to high-quality rough diamonds without overseas travel,” he explained. “We are exploring this opportunity closely and would welcome an MoU with Namibia if discussions progress.”
The proposal reflects a shift in global diamond trade. While India has long led in cutting and polishing, the tax exemption signals an effort to become a trading hub, not just a processing center. For Namibia, the arrangement could mean more stable demand and better access to India’s vast manufacturing network.
No agreement has been finalized. The tax exemption remains a proposal, and both sides must still formalize terms. However, the visit indicates a shared interest in bypassing traditional intermediaries, a change that could benefit both nations if implemented.
Namibia’s diamonds, prized for their clarity and size, have historically commanded premium prices. A direct trade route to India could lower costs for manufacturers while giving Namibia a more efficient path to its largest market. Negotiations over logistics, pricing, and regulations will likely take months.
The delegation’s tour marks an early step toward a potential realignment in the diamond trade. Whether it leads to a lasting partnership remains uncertain, but the foundation has been set.
