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Direct Diamond Trade in Focus as Botswana President Applauds GJEPC’s White Paper

GJEPC’s policy roadmap gains international support as Botswana backs efforts to strengthen global diamond trade practices.

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Hon’ble President of India, Smt. Droupadi Murmu, visited Botswana on a State Visit from 11 to 14 November 2025. The Gem and Jewellery Export Promotion Council (GJEPC), representing India’s diamond sector, joined the Indian delegation along with South Gujarat Chamber of Commerce and Industry (SGCCI) at the invitation of the Government of Botswana

During the visit, GJEPC presented its White Paper titled ‘Strengthening India-Botswana Diamond Partnership’ to His Excellency President Duma Gideon Boko. The document was formally handed over by Jayanti Savaliya, Regional Chairman – Gujarat, GJEPC.

The discussions centred on creating a more direct and efficient diamond trade pathway between India and Botswana. At present, Botswana-origin rough diamonds reach India through multiple intermediary hubs, raising costs, restricting access for MSMEs, and adding unnecessary logistical steps. The White Paper outlines a practical route to build a direct trade channel that strengthens both economies.

President Boko went through the report during the meeting and expressed appreciation for its clarity and forward-looking approach. He noted that the study shows “India is thinking positively for Botswana”, and thanked GJEPC for offering a workable roadmap for building a direct link with India’s diamond industry.

Botswana-based mining companies described the paper as revealing, highlighting its insights on direct supply, MSME access, and future cooperation through the Special Notified Zones (SNZ) in Surat and Mumbai, as well as GJEPC’s Special Materials Distribution Organization (SMDO).

Following the meeting, President Boko invited the Indian delegation to the Presidential dinner hosted in honour of President Murmu. He later held a separate meeting with the delegation, joined by his full ministerial team, underscoring Botswana’s strong interest in advancing structured cooperation with India’s diamond sector.

During the visit, the Indian delegation also proposed positioning Gaborone and Surat as twin cities focused on diamond-sector collaboration.

Jayanti Savaliya, Regional Chairman – Gujarat, GJEPC, said, “It was a privilege to present this White Paper during President Murmu’s historic visit and share India’s perspective on building a direct and efficient diamond corridor between Botswana and Surat.”

Julius Tsheko, Regional Director, Botswana Investment and Trade Centre, New Delhi, said, “Our team was pleased with the high-level Indian delegation that visited Botswana during the first-ever State Visit of an Indian Head of State. President Boko believes India has the capability to invest in Botswana and shape its economic future. We look forward to working together to turn these opportunities into reality.”

Nikhil Madrasi, President, SGCCI, added, “Botswana and India share a common vision of sustainable growth and economic partnership. Beyond diamonds, there is strong potential for trade in textiles, engineering, technology and services. Strengthening ties with Botswana will support greater business exchanges, innovation and cultural understanding.”

The encouraging response to the White Paper, combined with the ministerial-level discussions and interest in the Gaborone–Surat twin city idea, signals fresh momentum for a stable, transparent and mutually supportive India–Botswana diamond trade framework.

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DiamondBuzz

China ends VAT concession for diamonds

Policy Shift Signals Stronger Support for Domestic Diamond Supply Chain

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China has eliminated its value-added tax (VAT) concessions on diamond imports, This change applies to all diamonds—both natural and lab-grown—traded through the Shanghai Diamond Exchange (SDE), China’s sole authorized platform for general-trade diamond imports and exports, meaning it affects the entire diamond trade sector.

Previously, importers benefited from a “levy-and-immediate-rebate” mechanism where they paid 13 per cent VAT but immediately received a 9 per cent refund, resulting in an effective tax burden of just 4 per cent. Under the new regime, importers and traders must pay the full 13 per cent VAT upfront at import, recovering it only after the diamonds are sold. This creates significant cash flow pressure and higher upfront costs for businesses in the diamond supply chain.

The policy change also extends to rough diamonds, which were previously zero-rated but now face the full 13 per cent VAT. This represents a dramatic shift in China’s treatment of raw diamond imports, eliminating what was effectively a tax-free entry point for rough stones destined for processing.

The immediate impact is twofold: consumers will face higher diamond prices as importers and retailers pass on increased costs, while domestic diamond producers gain a competitive advantage by no longer operating at a tax disadvantage compared to imported goods. This leveling of the playing field suggests a policy shift toward supporting domestic diamond manufacturing and trading capabilities.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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