De Beers working with govt for zero-tariff in US

MUMBAI: De Beers Group is collaborating with the Indian govt to establish a policy of zero tariff for diamonds entering the US after being cut and polished in India. The group has also met with Piyush Goyal, minister of commerce and industry, requesting him to engage with his US counterpart for the "free flow of diamonds".

Al Cook, CEO of De Beers Group, stated that 90% of diamonds are exported from India, making it crucial for the country to secure a deal before July 9. "Britain and India seem to be doing very good jobs on working with tariff deals with the US. I am very confident that India will reach a deal ahead of July 9. We have already seen a deal in the UK," he said.

Cook added that beyond India and the US, the world allows the "free flow of natural diamonds" as there are only a few places around the world, mainly in Africa, where they are produced. Since diamonds are mined in the US and cut and polished mostly in India, a zero-duty entry of diamonds into the US will not lead to any job losses, he reasoned. "We don't think there should be a tax on love," the De Beers CEO remarked. Discussing shifting trends, he noted that until a few years ago, it was about diamonds 'from India' and 'by India,' but now it is 'for India' and 'to India.' He was hinting at the increasing domestic demand for diamonds in the second largest market in the world.

The diamond conglomerate forecasts that India's natural diamond consumption market is likely to double in the coming five years, from about $9-10 billion to about $18-20 billion. Speaking about the bifurcation of the market into natural and lab-grown diamonds (LGD), he mentioned that as LGD wholesale value has fallen to below $60 per carat, the significance of technology-enabled diamond testing has grown in importance.



Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.