Context

• The global diamond trade symbolises wealth and prestige but has also been linked to violence and political instability.
• During the 1990s, armed groups financed civil wars through illegal sales of rough diamonds, commonly called conflict diamonds.
• To curb this problem, the international community established the Kimberley Process, a multilateral framework regulating the trade of rough diamonds.
• India’s assumption of the chairmanship in 2026 marks a significant moment.
• Positioned at the centre of the international diamond value chain, India can guide reforms addressing ethical trade, accountability, and technological modernization while strengthening global governance

Origin and Evolution of the Kimberley Process

• Emergence of the Initiative
  • The initiative began in 2000 through dialogue among southern African nations to prevent the financing of wars through diamonds.
  • Negotiations among participating countries resulted in the Kimberley Process Certification Scheme in 2003.
  • The framework now includes 60 participants representing 86 countries and oversees about 99.8% of the world’s rough diamond production.
  • It functions as an important international regulatory arrangement controlling trade in a single high-value commodity.
• The Certification Mechanism
  • The certification scheme requires each shipment of rough diamonds to carry a validated certificate confirming legitimate origin.
  • Trade is permitted only between compliant member states, and participants must share statistical data on production and exports.
  • This mechanism is intended to maintain transparency and prevent illegal trade networks.

India’s Strategic Role in the Global Diamond Value Chain

• India is not a major producer but remains the largest global processor of diamonds.
• It imports nearly 40% of global rough diamonds and performs cutting and polishing mainly in Surat and Mumbai before exporting to the United States, China, the United Arab Emirates, Israel, and Hong Kong.
• Countries such as Angola, Botswana, Russia, Canada, Congo, and Namibia dominate mining, yet India controls the value-addition stage.
• This central position provides strong leverage within the supply chain and enables India to influence international standards through diplomacy and trade practices.

Major Challenges Facing the Kimberley Process

• Narrow Definition of Conflict Diamonds
  • The existing definition focuses only on diamonds funding rebel groups against governments.
  • It excludes broader abuses including state violence, forced labour, human trafficking, environmental damage, and exploitation in artisanal mining.
  • Consequently, diamonds linked to human rights violations may still enter legitimate markets.
• Decision-Making Constraints
  • The Kimberley Process relies on consensus, allowing any participant to block action through veto
  • This weakens enforcement and limits the system’s capacity to identify problematic sources.
• Ineffective Sanctions
  • The ban imposed on the Central African Republic in 2013 showed that embargoes alone can increase smuggling and instability.
  • Without economic assistance, communities dependent on mining face hardship, reducing the effectiveness of punitive measures.

Reform Opportunities Under India’s Chairmanship

• Institutional Reforms
  • A technical working group could examine violence and risks beyond rebel insurgencies and gradually build agreement for redefining conflict diamonds.
  • Institutional improvements may include independent audits, public disclosure of detailed data, and strengthened engagement with civil society.
• Technological Modernisation
  • Digital innovation offers a major reform pathway. A blockchain-based system could provide tamper-proof, time-stamped shipment records.
  • Enhanced digital certification would reduce fraud, improve traceability, and modernize the global supply chain.
• Capacity Building for Producer Countries
  • Support for producing regions is essential. Establishing regional capacity-building hubs in central and eastern Africa could provide training, technical support, and forensic
  • Cooperative reforms would encourage compliance rather than punishment.

Developmental Focus, the African Dimension and India’s Global Leadership Role

• Developmental Focus and the African Dimension
  • Diamond mining supports livelihoods across Africa.
  • Aligning KP initiatives with the SDGs, including poverty reduction and decent work, can ensure revenues contribute to local health, education, and infrastructure.
  • Responsible trade would shift the framework from restriction toward development, sustainability, and inclusive economic growth.
• India’s Global Leadership Role
  • As a major voice of the Global South, India can balance the interests of producers, processors, and consumers.
  • By strengthening accountability and promoting multilateralism, India can transform the Kimberley Process into a more credible international institution and reinforce its reputation as a constructive global actor.

Conclusion

• The Kimberley Process has reduced the circulation of conflict diamonds but remains constrained by narrow definitions, political limitations, and weak developmental engagement.
• India’s leadership in 2026 presents a major opportunity to implement institutional reforms, technological modernisation, and cooperative partnerships with African producers.
• A reformed framework emphasising transparency, community welfare, and ethical trade can convert the diamond industry into a responsible global system while strengthening international cooperation and sustainable economic progress.