How India Seeks to Strengthen Global Diamond Governance
Table of Contents
Relevance: GS Paper II – International Relations – International institutions and global governance – India’s role in global governance mechanisms
For Prelims:
- Conflict Diamonds (Blood Diamonds), Kimberley Process (KP), Kimberley Process Certification Scheme (KPCS), Rough Diamonds, Gem and Jewellery Export Promotion Council (GJEPC), UNGA Resolution on Conflict Diamonds.
For Mains:
- Global Resource Governance, Ethical Supply Chains, Natural Resource Conflicts, Transparency and Traceability in Trade, Digital Certification in Commodity Trade, Conflict Minerals Governance.
Why in News?
India has assumed the chairmanship of the Kimberley Process (KP) in 2026, an international initiative aimed at preventing the trade of conflict diamonds.
As a major player in the global diamond supply chain, India seeks to introduce reforms to strengthen transparency, traceability and governance in the global diamond trade.
Background and Context
Natural resources such as oil, gas, uranium, gold and diamonds have historically been linked to violent conflicts in several parts of the world.
During the 1990s, diamonds were used to finance armed conflicts in several African countries such as:
- Angola
- Sierra Leone
- Liberia
- Rwanda
These diamonds, often called “blood diamonds” or “conflict diamonds”, were sold in international markets to fund insurgencies.
This led to the creation of a global mechanism to regulate the diamond trade.
What are Conflict Diamonds?
Conflict diamonds are rough diamonds mined in areas controlled by rebel groups or insurgent forces and used to finance armed conflicts against legitimate governments.
The term gained global attention after reports linking diamond trade to civil wars in Africa.
Characteristics of conflict diamonds include:
- Illegal mining and smuggling
- Lack of traceability
- Funding of armed violence and insurgency
- Entry into legitimate global supply chains
Kimberley Process Certification Scheme (KPCS)
To address the issue of conflict diamonds, the Kimberley Process (KP) was launched in 2000, and the Kimberley Process Certification Scheme (KPCS) was formally established in 2003.
Key Features
- A voluntary international agreement
- Participating countries must ensure that exported rough diamonds are conflict-free
- Each shipment must carry a Kimberley Process certificate
- Trade with non-participating countries is prohibited
Participation
- 60 participants (including the European Union as a single participant)
- Covers over 99% of global rough diamond trade
India’s Role in the Global Diamond Industry
India plays a critical role in the global diamond value chain.
Key facts:
- India is the largest cutting and polishing hub in the world.
- It is a major importer of rough diamonds.
- India is the largest exporter of cut and polished diamonds.
- Diamond exports were approximately $13.3 billion in 2024–25.
India has been a member of the Kimberley Process since 2003.
The Gem and Jewellery Export Promotion Council (GJEPC) serves as the nodal agency implementing the certification system under the supervision of the Department of Commerce.
India has previously chaired the Kimberley Process in:
- 2008
- 2019
- 2026
Significance of India’s Chairmanship
India’s chairmanship is strategically important because:
- India is deeply integrated into the global diamond supply chain.
- It can influence reforms in ethical sourcing and governance mechanisms.
- It can strengthen consumer confidence in conflict-free diamonds.
The chairmanship also enhances India’s role in global resource governance frameworks.
Proposed Reforms in Diamond Governance
India aims to strengthen the Kimberley Process through several reforms.
1. Expanding Definition of Conflict Diamonds
The current definition focuses only on diamonds funding armed conflicts.
India supports expanding the definition to include diamonds associated with:
- Human rights violations
- Child labour
- Environmental damage
2. Improving Transparency
India seeks to improve transparency through:
- Data-driven monitoring
- Public reporting of diamond trade flows
3. Digital Certification and Traceability
India proposes the use of digital certification systems to ensure better tracking of diamonds from mine to market.
This will help prevent:
- Fraudulent certificates
- Smuggling
- Supply chain manipulation
4. Capacity Building for Developing Countries
Many diamond-producing countries lack institutional capacity to enforce certification systems.
India aims to support:
- Technical training
- Institutional capacity building
- Regulatory compliance
Challenges in the Kimberley Process
Despite its success, the Kimberley Process faces several criticisms.
1. Narrow Definition of Conflict Diamonds
The current definition excludes diamonds linked to:
- Human rights abuses
- Child labour
- Environmental degradation
2. Voluntary Nature
The Kimberley Process is not legally binding.
Non-compliance may only result in suspension from the scheme, limiting enforcement.
3. Weak Monitoring Mechanisms
There are concerns about:
- Forged certificates
- Weak verification systems
- Limited supply chain traceability
Opportunities for India
India’s leadership in the Kimberley Process offers several opportunities:
- Strengthening India’s global diplomatic influence
- Enhancing the credibility of India’s diamond industry
- Promoting ethical and sustainable trade practices
- Supporting global governance reforms for natural resources
Way Forward
To improve global diamond governance, the following steps are necessary:
- Expanding the definition of conflict diamonds
- Introducing digital tracking technologies
- Strengthening international monitoring systems
- Increasing industry and civil society participation
- Enhancing transparency and accountability in diamond supply chains
Conclusion
Diamonds have historically fueled violent conflicts in several regions, making global governance essential for ethical trade. The Kimberley Process has played a crucial role in reducing conflict diamonds in global markets, but evolving challenges require reforms. India’s chairmanship provides a significant opportunity to strengthen transparency, traceability and ethical governance in the global diamond industry.
UPSC PYQ
Q. The elemental composition of diamond is (NDA-II – 2024)
A. Carbon and Hydrogen
B. Carbon and Oxygen
C. Pure Carbon
D. Pure SiliconBottom of Form
Answer: C
CARE MCQ
Q. With reference to the Kimberley Process Certification Scheme (KPCS), consider the following statements:
- It is an international initiative aimed at preventing trade in conflict diamonds.
- It is a legally binding treaty enforced by the United Nations Security Council.
- Rough diamond shipments between participating countries must carry a Kimberley Process certificate.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Explanation
Statement 1 – Correct: The Kimberley Process aims to prevent the trade in conflict diamonds.
Statement 2 – Incorrect: It is a voluntary international certification scheme, not a legally binding treaty.
Statement 3 – Correct: All shipments of rough diamonds between participating countries must carry a Kimberley Process certificate.
