India’s proposed rough diamond tax holiday could significantly lift the country’s export earnings, with estimates pointing to a potential increase of $3 billion to $5 billion. The measure is being positioned as a way to strengthen India’s role in the global diamond trade and attract more rough diamond transactions to the country.
At the center of the proposal is a 15-year income tax exemption on the sale of rough diamonds in India. The provision is part of the Taxation and Other Laws (Amendment) Bill, 2026. Supporters of the move argue that a long tax-free window could make India a far more competitive destination for rough diamond trading.
If implemented, the policy could help India evolve into a much larger hub for rough diamonds rather than serving only as a downstream market. A tax break of this length would likely improve the appeal of routing rough diamond sales through India, potentially increasing trade volumes and related export activity.
The broader expectation is that the incentive would reshape the country’s place in the diamond supply chain by drawing more global business into the domestic market. With export gains of up to $5 billion being discussed, the proposal is being seen as a major policy step for India’s diamond trade outlook.
