What is the News?

  • India has assumed the Chair of the Kimberley Process (KP) for the year 2026.
  • The KP is a global mechanism to regulate trade in conflict diamonds.
  • India now has an opportunity to push for reforms in global diamond governance.

WHAT IS THE KIMBERLEY PROCESS?

  • The Kimberley Process (KP) is an international initiative to prevent trade in conflict diamonds.
  • Conflict diamonds are rough diamonds used by rebel or insurgent groups to fund violence against governments.
Origin
  • Initiated in May 2000 by countries of southern Africa.
  • In 2003, the Kimberley Process Certification Scheme (KPCS) was created.
Present Structure
  • 60 participants representing 86 countries.
  • Covers about 8% of global rough diamond production.

WHAT IS KIMBERLEY PROCESS CERTIFICATION SCHEME?

  • It ensures that only conflict-free rough diamonds enter the global supply chain.
  • Each shipment must carry a KP certificate issued by a participant country.
  • Trade is allowed only between certified member countries.
  • Countries must share accurate statistical data on diamond production and trade.

INDIA’S POSITION IN THE GLOBAL DIAMOND TRADE

  • India is not a major producer of rough diamonds.
  • However, it imports around 40% of global rough diamond imports (quantity and value).
  • India is the world’s leading cutting and polishing hub, mainly in:
    • Surat
    • Mumbai
  • India exports polished diamonds to:
    • China
    • Hong Kong
    • Israel
    • UAE
    • USA
Because of this central role, India has strong influence in the global diamond value chain. MAJOR DIAMOND PRODUCING COUNTRIES More than 85% of global rough diamond production comes from:
  • Angola
  • Botswana
  • Canada
  • Congo
  • Namibia
  • Russia

KEY ISSUES IN THE KIMBERLEY PROCESS

Narrow Definition of Conflict Diamonds
  • Current definition only covers diamonds used by rebel groups.
  • It does not include:
    • State-linked violence
    • Human rights violations
    • Human trafficking
    • Environmental damage
    • Abuses in artisanal mining
    • Illicit trade networks
This makes the definition limited and outdated.

DECISION MAKING CHALLENGES

  • KP decisions require consensus.
  • Any country can effectively block a decision.
  • This raises questions about whether KP can properly identify and act against conflict diamonds.
Example: Central African Republic (CAR)
  • CAR was banned from exporting rough diamonds in 2013.
  • It rejoined in 2024.
  • The embargo led to:
    • Increased smuggling
    • Continued violence
This shows that bans without support may worsen problems instead of solving them.

WHAT CAN INDIA DO AS CHAIR?

Broaden the Definition Carefully
  • Create a technical working group to study:
    • Violence
    • Human rights risks
    • Issues beyond rebel funding
  • Build global consensus before changing the official definition.
Use Technology for Transparency India can promote:
  • Digital, tamper-proof KP certificates
  • Blockchain-based certification system

Benefits:

  • Reduce fraud
  • Improve transparency
  • Modernise customs and tracking systems
  • Each shipment could have a unique, time-stamped digital record.

Support Producer Countries :

  • Establish regional KP technical hubs in central and eastern Africa.
  • Provide:
    • Training
    • IT support
    • Certification assistance
    • Forensic capacity
This approach makes reforms collaborative rather than punitive.

INSTITUTIONAL REFORMS

  • Introduce independent or third-party audits.
  • Ensure full public release of detailed KP statistics.
  • Strengthen role of civil society organisations.
Since KP has a tripartite structure (governments + industry + civil society), all three must remain actively involved.

FOCUS ON AFRICA

  • Diamonds provide livelihoods to many African communities.
  • India can link KP goals with Sustainable Development Goals (SDGs) such as:
    • Decent Work
    • Poverty Reduction
    • Responsible Consumption
  • Encourage diamond revenues to support:
    • Health
    • Education
    • Local infrastructure
This shifts the focus from just blocking bad diamonds to building a responsible and inclusive diamond trade system.