Relevance: GS Paper II – International Relations – International institutions and global governance – India’s role in global governance mechanisms

Important Keywords for Prelims and Mains

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

  • 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:

  1. It is an international initiative aimed at preventing trade in conflict diamonds.
  2. It is a legally binding treaty enforced by the United Nations Security Council.
  3. 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.

Relevance: UPSC – GS Paper III (Energy, Infrastructure, Climate Change) | Renewable Energy Transition

Important Keywords for Prelims and Mains

For Prelims:

  • Renewable Energy Capacity, Grid Congestion, Stranded Renewable Power, General Network Access (GNA), Temporary General Network Access (T-GNA), Central Transmission Utility (CTU), Grid India, STATCOM, Reactive Power Devices, Dynamic Security Assessment, Bharat Climate Forum (BCF) 2026

For Mains:

  • Renewable Energy Integration, Transmission Infrastructure Bottlenecks, Grid Management Challenges, Institutional Inertia in Energy Governance, Renewable Curtailment, Planning–Operations Disconnect, Energy Transition Risks, Power Sector Reforms

Why in News?

  • Concerns have emerged regarding grid congestion and stranded renewable energy capacity in India.
  • The issue was highlighted at the Bharat Climate Forum (BCF) 2026, where policymakers, developers, financiers, and grid planners discussed operational risks in India’s renewable energy transition.

India’s Renewable Energy Transition

India has emerged as one of the leading countries globally in the shift toward clean energy. Rapid expansion of renewable energy capacity has been driven by several factors.

Key drivers include:

  • Large-scale government policy support
  • Competitive renewable energy auctions
  • Growing private sector investment in solar and wind projects
  • Declining costs of renewable energy technologies

India has also set ambitious energy transition targets:

  • Achieving 500 GW of non-fossil fuel capacity by 2030
  • Meeting 50% of energy requirements from renewable sources
  • Achieving net-zero emissions by 2070

As a result, renewable capacity has expanded rapidly across states such as:

  • Rajasthan
  • Gujarat
  • Tamil Nadu
  • Karnataka

However, despite this growth, structural and operational challenges have begun to emerge.

Stranded Renewable Power in India

One of the most serious challenges facing India’s renewable energy transition is stranded renewable power.

Stranded power refers to situations where:

  • Electricity is successfully generated by renewable plants
  • But cannot be transmitted to consumers due to grid limitations.

For example:

  • In Rajasthan, more than 4,000 MW of commissioned renewable capacity cannot evacuate power during peak hours.
  • Rajasthan has about 23 GW of renewable capacity installed.
  • However, available power evacuation capacity is only about 18.9 GW.

This leads to curtailment of renewable energy generation, resulting in:

  • Financial losses for developers
  • Inefficiencies in the power system
  • Underutilisation of clean energy resources

Transmission Infrastructure Bottlenecks

Transmission infrastructure is crucial because renewable energy generation is often concentrated in specific geographic regions, while electricity demand is spread across the country.

To address this challenge, large transmission corridors have been developed.

However, many of these corridors are operating far below their design capacity.

Examples include:

  • 765 kV double-circuit transmission corridors
  • Designed to evacuate around 6,000 MW of electricity

In practice:

  • These corridors are often operated at only 600–1,000 MW
  • Utilisation levels remain below 20%

These corridors involve massive public investment, with each costing around ₹4,000–₹5,000 crore.

Low utilisation results in:

  • Inefficient use of public infrastructure
  • Higher cost burden on electricity consumers

Institutional and Operational Challenges

A major cause of grid congestion is the disconnect between infrastructure planning and operational management.

The process typically works as follows:

  • The Central Transmission Utility (CTU) plans transmission corridors based on projected renewable capacity.
  • Developers receive General Network Access (GNA) approvals to connect their plants to the grid.
  • Renewable energy developers invest heavily based on these approvals.

However:

  • Operational decisions by grid operators sometimes restrict the amount of electricity that can flow through the corridors.

This results in a situation where:

  • Infrastructure exists on paper
  • But cannot be fully utilised in practice

Such mismatches reduce investor confidence and disrupt the renewable energy ecosystem.

Curtailment and Financial Risks

Curtailment refers to the forced reduction in electricity generation due to grid constraints.

In some regions:

  • Projects with Temporary General Network Access (T-GNA) face complete shutdowns during peak solar hours.
  • Projects with Permanent Network Access continue operating.

This creates:

  • Unequal financial risk distribution
  • Revenue losses for affected developers

Since renewable energy projects involve large upfront investments, prolonged curtailment can discourage future investment in the sector.

Technical Solutions and Global Best Practices

Many technical challenges associated with renewable integration can be addressed through modern grid management technologies.

Key solutions include:

• Advanced reactive power technologies such as STATCOMs (Static Synchronous Compensators)

• Dynamic grid management systems that enable real-time monitoring and contingency management

• Adaptive line rating technologies, allowing transmission lines to carry more electricity under favourable environmental conditions

Countries with high renewable energy penetration have adopted these technologies to balance grid stability and efficient power transmission.

Institutional Reforms Needed

Experts argue that addressing renewable energy integration challenges requires stronger institutional coordination and regulatory reforms.

Key reform measures include:

• Improved grid utilisation targets, ensuring grid operators maximise asset use while maintaining stability

• Transparent curtailment mechanisms so power reductions are distributed fairly among generators

• Dynamic reallocation of unused transmission capacity through real-time systems

• Better coordination between planning agencies and grid operators to ensure infrastructure performs as intended

Conclusion

India’s renewable energy transition has achieved remarkable growth in generation capacity. However, challenges such as grid congestion, stranded renewable power, transmission underutilisation, and institutional inertia threaten to slow progress. Addressing these issues will require not only building more infrastructure but also improving grid management, institutional accountability, and operational efficiency. A balanced approach that ensures both grid stability and effective utilisation of renewable energy resources will be essential for achieving India’s long-term clean energy goals.

UPSC PYQ

Q. Consider the following statements about PM Surya Ghar Muft Bijli Yojana:

I. It targets installation of one crore solar rooftop panels in the residential sector.
II. The Ministry of New and Renewable Energy aims to impart training on installation, operation, maintenance and repairs of solar rooftop systems at grassroots levels.
III. It aims to create more than three lakhs skilled manpower through fresh skilling, and up-skilling, under scheme component of capacity building.

Which of the statements given above are correct?

A. I and II only

B. I and III only

C. II and III only

D. I, II and III

Answer: A

Explanation

Statement I – Correct
PM Surya Ghar Muft Bijli Yojana aims to promote rooftop solar installations for one crore households in the residential sector. Therefore, the statement is correct.

Statement II – Correct
The scheme also focuses on capacity building and training related to installation, operation, maintenance and repair of rooftop solar systems at the grassroots level. Hence, this statement is correct.

Statement III – Incorrect
The statement about creating more than three lakh skilled manpower is not accepted as correct in this question. This specific figure is not taken as part of the correct answer here.

CARE MCQ

Q. Consider the following statements:

  1. The International Solar Alliance (ISA) was co-founded by India to promote solar cooperation and mobilise solar finance among member countries.
  2. India Energy Week (IEW) is a global platform hosted by India to discuss energy security, clean fuels and energy transition.

Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Answer: C

Explanation

Statement 1 is correct: The International Solar Alliance (ISA) was co-founded by India to promote solar energy deployment, mobilise solar finance and encourage technology transfer among member countries, particularly developing nations.

Statement 2 is correct: India Energy Week (IEW) is hosted by India as a global platform bringing together governments, industry leaders and investors to discuss energy security, renewable energy and energy transition pathways.

Additional Information

  • ISA aims to expand affordable solar energy across tropical countries located between the Tropics of Cancer and Capricorn.
  • India Energy Week strengthens India’s role in the global energy dialogue and clean energy transition.
UPSC Daily Current Affairs 11th March 2026
UPSC Daily Current Affairs 9th March 2026

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