A Namibian delegation, led by Gaudentia Krohne, Deputy Minister for Industries, Mines and Energy, visited India’s diamond industry hubs last week. The group, which included diamond inspectors and the Honorary Consul of Namibia in Mumbai, explored establishing direct trade routes. Their discussions focused on utilizing India’s newly designated Special Notified Zones (SNZs) for routing Namibian rough diamonds. This initiative follows India’s recent tax reform, which could alter global diamond trade patterns between producer nations and international markets.
Namibia’s high-value diamonds meet India’s tax-free trading zones
The delegation held formal talks with officials from the Gujarat Diamond Export Promotion Council (GJEPC) on August 11. These discussions marked the first official exploration of sending Namibian rough diamonds through India’s SNZs. The visit occurred after India’s Taxation and Other Laws (Amendment) Bill, 2026 proposed a 15-year income-tax exemption for rough diamond sales processed through these zones. This exemption, effective from October 1, 2026, applies to foreign mining companies, brokers, and trading entities operating in Mumbai’s Bharat Diamond Bourse (BDB) and Surat’s diamond hub. The policy will remain in place until the tax year ending March 31, 2041.
Namibia’s appeal in the diamond market stems from its production quality rather than quantity. In 2025, the country produced 2.09 million carats worth $721.4 million, placing it fifth globally by value despite contributing just 8% of total rough diamond output. The average carat value stood at $343.88, the highest among producing nations according to Kimberley Process data. Krohne emphasized that Namibia’s diamonds, though not the most abundant, represent some of the world’s finest. This quality makes them an ideal match for India’s cutting and polishing industry.
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Kirit Bhansali, Chairman of GJEPC, described the new tax policy as a way to position India as more than just a manufacturing center. He noted that Namibia produces the highest-value rough diamonds while India processes 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,” Bhansali stated.
The Namibian officials examined key facilities, including the BDB, the Indian Diamond Trading Centre (IDTC), and customs operations. The IDTC, designed to offer smaller Indian manufacturers direct access to international roughs, received particular attention. Krohne observed that if India’s infrastructure already serves other diamond producers, Namibia could achieve similar advantages. “We can bring our diamonds here, showcase them here and even sell them. If this platform created by India is already being used by other countries, why can Namibia not make use of it too?” she said.
India’s tax break could shift global diamond flows
The delegation’s visit coincides with India’s broader effort to attract international rough diamond trading. In 2025, India imported 106.09 million carats valued at $11.07 billion—the highest among nations. However, much of this trade currently bypasses domestic zones in favor of overseas hubs like Dubai or Antwerp. The SNZ exemption aims to reverse this trend by offering tax stability and reduced operational costs for foreign participants.
For Namibia, the opportunity extends beyond tax advantages. India’s established supply chain, spanning sourcing to polishing, could simplify processes for Namibian miners. Discussions included potential memorandums of understanding (MoUs) to formalize trade routes. Anoop Mehta, Convener of GJEPC’s Diamond Panel, expressed optimism about the prospects. He indicated the council would pursue an agreement if negotiations advance.
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A test case for India’s diamond zone strategy
The delegation’s focus on India’s Special Economic Zone in India (SEEPZ) highlighted another aspect of the proposal: integrating Namibia’s roughs into India’s manufacturing system. SEEPZ’s infrastructure supports the entire process, from cutting to export logistics, potentially accelerating the transformation of Namibian diamonds into polished products. Meetings with the BDB Managing Committee and discussions on how smaller Indian manufacturers access international roughs without overseas travel or logistical challenges were central to the visit.
Namibian delegation and Indian industry representatives hold formal meetings
The visiting Namibian delegation met with officials from the Gujarat Diamond Export Promotion Council (GJEPC) to discuss potential trade arrangements. Key figures from the Namibian side included Rehabeam Nepaya, Deputy Director of Diamond Affairs, alongside Secret Ruhaka and Titus Amukwelele, both Diamond Inspectors, and Balchand Jain, the Honorary Consul of Namibia in Mumbai. On the Indian side, Anoop Mehta, Convener of the Diamond Panel, along with Ashish Borda and Bharat Ghori, both Members of the Diamond Panel, and Mr. Sabyasachi Ray, Executive Director of GJEPC, welcomed the delegation.
The discussions covered the operational aspects of routing Namibian rough diamonds through India’s Special Notified Zones. The Indian officials provided insights into the diamond industry’s structure, including an overview of the sector’s operations and the role of the Bharat Diamond Bourse (BDB). The delegation also toured the Indian Diamond Trading Centre (IDTC) and SEEPZ to observe India’s manufacturing infrastructure and trade processes firsthand.
