India Seeks to Strengthen Global Diamond Governance

 

Competition for scarce natural resources such as oil, gas, uranium, and critical minerals has historically played a role in geopolitical tensions and conflict. Diamonds have also been implicated in violent conflicts, particularly in parts of Africa where the trade in rough diamonds once helped finance armed insurgencies and civil wars. These events underscored the need for a global system that promotes ethical sourcing and ensures transparency in the international diamond trade.

In response, the Kimberley Process (KP) was launched in May 2000 as a multilateral initiative aimed at preventing the trade in so-called “conflict diamonds.” The process established an international certification framework designed to ensure that rough diamonds entering the global market are not used to finance armed conflict.

Understanding Conflict Diamonds

“Conflict diamonds,” often referred to as “blood diamonds,” are rough diamonds mined in areas controlled by rebel movements or their allies and sold to finance military activities against legitimate governments. The issue came to global attention during the 1990s, when conflicts in countries such as Angola, Sierra Leone, Rwanda, and Liberia were linked to diamond revenues that funded armed groups.

Because many of these diamonds were mined from easily accessible alluvial deposits and traded through informal networks, they could easily enter legitimate international supply chains. Reports published in 2000, including investigations by Partnership Africa Canada and the United Nations, highlighted how illicit diamond trading contributed to prolonged conflicts and humanitarian crises.

In response, the United Nations General Assembly adopted a resolution in December 2000 addressing the role of diamonds in financing armed conflict. The resolution defined conflict diamonds as stones originating from areas controlled by forces opposing legitimate governments and used to fund military activities against them.

The Kimberley Process Certification Scheme

To address the issue, the government of South Africa convened a meeting in the city of Kimberley in 2000, bringing together governments, the World Diamond Council, industry stakeholders, and civil society organisations.

Following two years of negotiations, the Kimberley Process Certification Scheme (KPCS) was formally established in 2003. The scheme introduced a set of minimum standards that participating countries must implement to certify that shipments of rough diamonds are conflict-free.

Under the system:

• Every shipment of rough diamonds between participating countries must be accompanied by a Kimberley Process certificate confirming that the stones are conflict-free.
• Participating governments are required to implement national legislation and internal controls.
• Annual statistics on rough diamond trade must be published to enhance transparency.

Today, the Kimberley Process includes 60 participants, with the European Union and its member states counted collectively as a single participant. Together, KP participants account for more than 99% of global rough diamond trade, while trade with non-participants is prohibited.

India’s Role in the Global Diamond Supply Chain

India occupies a central position in the global diamond industry. It is the world’s largest hub for diamond cutting and polishing and a major importer of rough diamonds. As the leading exporter of cut and polished diamonds, India’s exports reached approximately US$13.3 billion in 2024–2025, and the country remains one of the largest consumer markets for diamonds, second only to the United States.

India has been a participant in the Kimberley Process since its inception in 2003. Implementation of the certification system is overseen by the Gem and Jewellery Export Promotion Council (GJEPC), which operates under the supervision of the Department of Commerce within the Ministry of Commerce and Industry.

In 2026, India assumed the chairmanship of the Kimberley Process for the third time, having previously chaired the initiative in 2008 and 2019. The chairmanship carries both symbolic and strategic importance, providing India with an opportunity to strengthen the credibility of global diamond governance while reinforcing confidence in the international diamond supply chain.

Opportunities for Reform

India’s leadership comes at a time when discussions around reforming the Kimberley Process are gaining momentum. One of the key areas under review is the definition of “conflict diamonds,” which currently focuses primarily on stones used to finance rebel movements against legitimate governments.

Many stakeholders argue that the definition should be expanded to address broader concerns, including:

• Child labour
• Environmental damage
• Human rights violations linked to diamond mining

Another priority is improving traceability and transparency across the global diamond supply chain, ensuring that diamonds can be reliably tracked from mine to market.

In addition, strengthening capacity-building and technical support for countries with limited institutional resources could enhance the effectiveness of the certification framework and ensure more consistent implementation of standards worldwide.

Strengthening Confidence in the Diamond Market

As one of the most influential players in the global diamond trade, India has a strong incentive to ensure that the Kimberley Process remains credible, transparent, and trusted by consumers. By supporting meaningful reforms and strengthening compliance mechanisms, the chairmanship offers India an opportunity to reinforce ethical standards across the international diamond industry.

For the global diamond sector, maintaining strong governance frameworks is essential to preserving consumer confidence and ensuring that diamonds remain symbols of beauty, rarity, and integrity.

Source: DCLA

How Efforts to Control the Diamond Trade Are Hurting the Very Communities They Were Supposed to Protect

For more than two decades, global policies aimed at restricting the flow of diamonds from conflict zones most notably through the “blood diamond” narrative have reshaped the way diamonds are traded. These measures were intended to protect vulnerable communities in Africa from exploitation and violence. But today, the ripple effects of those same restrictions are being felt thousands of kilometres away, exposing the fragility of a supply chain that depends on the livelihoods of millions.

In India’s diamond capital of Surat, where an estimated 80% of the world’s diamonds are cut and polished, workers like Alpesh Bhai once saw diamonds as a pathway out of poverty. The industry offered stability, income, and, for the first time, the promise of private education for their children.

That progress has since been jeopardised.

A Perfect Storm of Restrictions and Sanctions

First, sanctions targeting Russian rough diamonds disrupted supply a supply which, for India, had been essential. Then came the imposition of 50% United States tariffs on polished diamonds, compounding the downturn.

The intention behind these measures from conflict-diamond controls in Africa to punitive trade tools against Russia has been to hold powerful actors accountable. Instead, the burden has fallen hardest on those with the least power in the chain: cutters, polishers, and their families.

Alpesh, once earning enough to support education for his two young daughters, saw his salary cut nearly in half before losing his job altogether. Private schooling quickly became unaffordable. He withdrew his children and moved them into a public school where learning opportunities are significantly limited.

“I’ve come back to where I started,” he said a sentiment now echoed across Surat.

The Human Cost Behind Supply Chain Pressure

Surat’s diamond sector employs over 600,000 people, many migrants from rural Gujarat who rely entirely on this trade. Layoffs, pay cuts, and reduced working hours have affected close to 400,000 workers.

Families are leaving the city. Children are dropping out of school. In the most tragic cases, mounting financial pressure has led to a rise in worker suicides.

Community leaders describe the situation as unprecedented. “The industry was always a ladder out of poverty,” one union representative explained. “Now that ladder is shaking for many, it’s disappearing.”

A Stark Reminder for the Diamond World

Conversations about responsible sourcing must include responsibility to all those in the value chain including cutters and polishers who transform rough diamonds into the beautiful stones valued globally.

Policies crafted to protect African workers from exploitation have, ironically, become a new form of harm both in Africa, where mining communities still struggle, and now in India, where workers are paying the price for geopolitical decisions far beyond their control.

As the global diamond market continues to evolve, one thing is clear:

Ensuring the ethical integrity of diamonds must not stop at the mine.
It must extend to every skilled hand that shapes them and every child whose future depends on this industry.

DCLA Transparent Certification and Shared Responsibility

WHAT ARE CONFLICT DIAMONDS

WHAT ARE CONFLICT DIAMONDS

Conflict diamonds, also known as blood diamonds, are diamonds that have been mined in war zones and sold to finance armed conflict against governments. These diamonds are typically mined under inhumane conditions by workers who are often forced to work in dangerous and exploitative conditions.
The profits from the sale of these diamonds are then used to fund armed conflicts, which often involve violence, human rights abuses, and forced labor. This cycle of violence and exploitation is known as the “diamond curse.”
To combat the trade in conflict diamonds, the international community has established the Kimberley Process Certification Scheme, which requires that all rough diamonds be certified as conflict-free before they can be sold on the international market. The Kimberley Process has helped to significantly reduce the trade in conflict diamonds, but concerns remain about the effectiveness of the scheme and the ongoing trade in illicit diamonds.

What percentage of diamond production are conflict diamonds
The percentage of diamond production that can be considered conflict or blood diamonds has decreased significantly since the introduction of the Kimberley Process Certification Scheme in 2003. According to the Kimberley Process, the percentage of conflict diamonds in the global diamond trade has fallen from approximately 15% in the 1990s to less than 1% today.
However, it is important to note that some critics have raised concerns about the effectiveness of the Kimberley Process in preventing the trade in conflict diamonds. They argue that the definition of conflict diamonds used by the Kimberley Process is too narrow, and that some diamonds mined in areas of conflict may still be entering the market through illegal channels.
Furthermore, there have been reports of human rights abuses and unethical practices in diamond mining in countries that are not considered conflict zones. So while the percentage of conflict diamonds in the global diamond trade is believed to be low, it is important to remain vigilant and continue efforts to ensure that all diamonds are mined and traded ethically and responsibly.

How do i ensure the diamond i buy is conflict free
To ensure that the diamond you buy is conflict-free, you should look for a diamond that has been certified as such by a reputable organization. The most widely recognized certification scheme for conflict-free diamonds is the Kimberley Process Certification Scheme (KPCS), which was established in 2003 to prevent the trade in conflict diamonds.
Here are some steps you can take to ensure that the diamond you buy is conflict-free:

1. Buy from a reputable jeweller: Look for a jeweller that is committed to selling conflict-free diamonds and has a policy in place to verify the origin of their diamonds. Many jewelers are members of organizations that promote ethical and responsible diamond sourcing, such as the Responsible Jewellery Council or the Jewelers of America.
2. Ask for a certificate of authenticity: Ask your jeweller for a certificate of authenticity that verifies the origin of the diamond you are interested in buying. The certificate should state that the diamond is conflict-free and has been mined and traded in compliance with the Kimberley Process.
3. Look for laser inscriptions: Some diamonds may have a laser inscription on the girdle that indicates the origin of the diamond and its certification number. This can be a helpful way to verify the diamond’s origin and ensure that it is conflict-free.
4. Consider buying a lab-grown diamond: Lab-grown diamonds are an ethical and sustainable alternative to mined diamonds. They are produced in a laboratory using advanced technology and do not have the same environmental or social impacts as mined diamonds.
   

By taking these steps, you can help ensure that the diamond you buy is conflict-free and has been mined and traded in a responsible and ethical manner.

Source: Roy Cohen DCLA