What Happened
- India assumed the chairmanship of the Kimberley Process (KP) for 2026, positioning it at the forefront of global diamond governance
- This is the third time India has been entrusted with the KP Chair
- As the lead member of the Global South and a major diamond processing hub, India is expected to steer meaningful reforms
- Key reform areas include expanding the definition of conflict diamonds, strengthening traceability, and improving compliance mechanisms
- Several African diamond-producing nations have raised concerns about India's selection, citing unresolved governance challenges
Static Topic Bridges
The Kimberley Process Certification Scheme (KPCS)
The Kimberley Process is an international certification scheme established to prevent the trade in "conflict diamonds" — rough diamonds used to finance armed conflict against governments. India's chairmanship places it at the centre of this global governance mechanism.
- Initiated: 2000, by Southern African diamond-producing countries following the devastating conflicts in Sierra Leone, Angola, and the Democratic Republic of Congo
- Operational: Since 2003, when the Kimberley Process Certification Scheme (KPCS) was formally launched
- Members: 60 participants (with the EU counted as one participant), representing over 99% of global rough diamond trade
- Mechanism: Each shipment of rough diamonds must be accompanied by a Kimberley Process Certificate guaranteeing it is conflict-free
- Key criticism: The definition of "conflict diamonds" is narrow — limited to diamonds used by rebel groups to fund conflict against recognised governments; it does not cover diamonds mined under human rights abuses by state actors
- Decision-making: Consensus-based, meaning any single participant can exercise a de facto veto — this has paralysed reforms
- Notable failure: The KP could not act on Zimbabwe's Marange diamonds (2008-2011) despite documented human rights abuses because the government (not rebels) controlled the mines
- India's role: World's largest diamond cutting and polishing centre (Surat processes approximately 90% of the world's diamonds by volume)
Connection to this news: India's unique position as both KP Chair and the world's largest diamond processing hub gives it leverage to push reforms — but also creates perceived conflicts of interest, particularly regarding traceability of rough diamonds flowing through Indian cutting centres.
India's Diamond Industry and Global Value Chain Position
India dominates the global diamond value chain at the cutting and polishing stage, making diamond trade governance directly relevant to India's economic interests and diplomatic leverage.
- Surat, Gujarat: Processes approximately 90% of the world's diamonds by volume and approximately 60% by value
- India's Gems and Jewellery Export Promotion Council (GJEPC) is the apex body for the sector
- India's gems and jewellery exports in FY2024-25: approximately $26-28 billion
- Employment: The diamond cutting and polishing industry employs approximately 1 million workers in Gujarat alone
- Supply chain: Rough diamonds sourced primarily from Botswana, Russia (ALROSA), South Africa, Angola, and Canada
- Russian diamond giant ALROSA supplies approximately 30% of the world's rough diamonds; Western sanctions on ALROSA have disrupted supply chains
- Lab-grown diamonds: India is also emerging as a major producer and exporter of lab-grown diamonds, which pose an existential challenge to the natural diamond market
- Special Notified Zone (SNZ): Established at Bharat Diamond Bourse, Mumbai, for customs-free import and re-export of rough diamonds
Connection to this news: India's chairmanship must navigate the tension between its economic interest in maintaining diamond trade flows (including from Russia) and the reform mandate to strengthen transparency and broaden the conflict diamond definition.
Conflict Resources and International Governance Frameworks
The Kimberley Process is one of several international frameworks governing trade in resources linked to conflict, alongside broader initiatives covering minerals, timber, and other commodities.
- EU Conflict Minerals Regulation (2021): Requires EU importers of tin, tantalum, tungsten, and gold (3TG) to conduct due diligence on supply chains
- Dodd-Frank Act Section 1502 (US, 2010): Required US-listed companies to disclose use of conflict minerals from the DRC and neighbouring countries (repealed/weakened under Trump in 2017)
- Extractive Industries Transparency Initiative (EITI): Voluntary standard for governance of oil, gas, and mineral resources — 57 implementing countries
- UN Guiding Principles on Business and Human Rights (2011): "Protect, Respect, and Remedy" framework applicable to extractive industries
- The concept of "blood diamonds" gained international attention through the 2006 film and advocacy by NGOs like Global Witness and Partnership Africa Canada
- Blood diamonds funded conflicts in: Sierra Leone (RUF), Angola (UNITA), Liberia (Charles Taylor), and DRC
- Modern challenges: Artisanal mining, child labour, environmental degradation, and state-sponsored violence in diamond mines are not adequately covered by the current KP framework
Connection to this news: India's KP chairmanship offers an opportunity to align diamond governance with broader international norms on conflict resources and human rights due diligence, potentially expanding the KP's scope beyond its narrow rebel-group definition.
Key Facts & Data
- Kimberley Process established: 2003 (initiated 2000)
- KP participants: 60 (EU as single participant), covering 99% of global rough diamond trade
- India's KP chairmanship: Third time (2026)
- Surat, Gujarat: Processes ~90% of world's diamonds by volume
- India's gems and jewellery exports: ~$26-28 billion (FY2024-25)
- Diamond industry employment in Gujarat: ~1 million workers
- ALROSA (Russia): Supplies ~30% of world's rough diamonds
- KP criticism: Narrow conflict diamond definition, consensus-based vetoes, weak traceability
- India's reform agenda: Blockchain-based traceability, expanded conflict definition, strengthened audits, SDG alignment