Indian tax holiday for rough diamonds to boost diamond exports by $3-5 billion

India’s lower house of Parliament passed the Taxation and Other Laws (Amendment) Bill, 2026, proposing a 15-year income tax exemption from October 1, 2026, to March 31, 2041, for eligible foreign companies selling rough diamonds through Special Notified Zones in Mumbai and Surat. 

Key Details of the Bill

Timeline and Scope

• Duration: 15-year statutory tax holiday active from October 1, 2026, until March 31, 2041.
• Locations: Special Notified Zones (SNZs) in Mumbai and Surat.
• Next Steps: Requires passage in the upper house and presidential assent to become law. [1, 2]

Eligible Entities

• Foreign diamond mining companies and their sightholders.
• Brokers and aggregators handling rough stones.
• Tender and auction entities connected to rough diamond sales. [1]

Industry Impact

• Eliminates past tax uncertainty for international mining and trading corporations.
• Allows direct physical sales and auctions inside India rather than forcing local buyers to source stones at overseas hubs like Dubai or Antwerp.
• Projected to significantly increase domestic trade capacity and boost overall diamond exports.