How India seeks to strengthen global diamond governance

‘Conflict diamond’ and its major hotspots

‘Conflict diamonds’, also known as blood diamonds, are the rough diamonds mined and used by rebel movements or their allies to finance armed conflicts aimed at undermining legitimate governments. The terms entered global discourse during the 1990s when international attention turned to the role of diamonds in financing violence in African countries like Angola, Sierra Leone, Rwanda, Liberia, etc. In these countries, diamonds were being mined and sold to generate funds for armed groups.

These diamonds entered the global market through informal and illegal trade networks, making it difficult to trace their origin. The ease of extracting alluvial diamonds, combined with limited monitoring and cross-border smuggling, allowed these stones to move into legitimate supply chains.

In 2000, Partnership Africa Canada released a report that linked diamonds to bloodshed in Sierra Leone. In the same year, the United Nations released the Fowler Report, which revealed how various companies and certain governments had been complicit in the illicit diamond trade and civil conflict.

As global pressure increased, the United Nations General Assembly (UNGA) passed a resolution in December 2000, addressing the role of diamonds in financing armed conflict. It defines ‘conflict diamonds’ as “diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognised governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council.”

Kimberley Process and its significance

As the issue of blood diamonds caught the world’s attention, and the major diamond-producing countries recognised the persistent social threat of conflict diamonds, the South African government convened a meeting at Kimberley in 2000. It brought together the World Diamond Council, diamond-producing states, and civil society organisations.

In December 2000, the UNGA adopted a resolution supporting the establishment of a diamond certification system. After two years of negotiations, the Kimberley Process Certification Scheme (KPCS) was established in 2003. It is enforced individually by KP Participant countries to ensure that rough diamonds in the legitimate supply chain are KP-compliant.

The KP is a voluntary agreement that provides a set of minimum requirements to be implemented by the participating countries towards ensuring a common standard for trade in conflict-free diamonds. Under the agreement, every shipment of rough diamonds between the participating countries must be accompanied by a KP certificate, which guarantees that diamonds are conflict-free.

For the effective implementation of the system, the agreement mandates domestic implementation of the certification system and the publication of their annual trade in rough diamonds. Together, KP participants (currently 60, with the European Union and its member states counted as a single participant) account for over 99 per cent of global rough diamond trade, while shipments of rough diamonds from or to non-participant countries are banned.

India’s diamond industry

India is a major importer of rough diamonds and the world’s largest cutting and polishing hub. As the top exporter of cut and polished diamonds, India’s exports stood at approximately $13.3 billion in 2024-2025. It is also the second-largest diamond market after the US.

India has been a member of KPCS since 2003, and the Gem and Jewellery Export Promotion Council (GJEPC) has been designated as the nodal agency to implement the certification process, which works under the supervision of the Department of Commerce, Ministry of Commerce and Industry, Government of India. India has assumed the chairpersonship of KP thrice: in 2008, 2019 and 2026.

As a country deeply embedded in the diamond supply chain, the chairmanship offers a strategic opportunity to India to strengthen both global diamond governance and its own industry credibility. India has a strong incentive to ensure that the global certification system remains robust, transparent, and trusted by consumer markets. It can support efforts to review the process, as it was reiterated by the UNGA resolution in 2025.

The key reforms revolve around reconsidering the definition of conflict diamonds, as it does not include diamonds linked to child labour, environmental harm, and human rights violations. The focus is also on strengthening transparency and traceability of rough diamonds across the global supply chain. Another priority could be enhancing capacity-building and extending technical support to participating countries with limited institutional resources to implement certification standards effectively.

How Delhi seeks to strengthen governance

KPSC is one of the most innovative mechanisms to ensure the peaceful use of natural resources. It has been largely successful in controlling the trade of blood diamonds. However, with time, it also faces a growing need for reforms. During its chairmanship, India seeks to focus on:

* Strengthening governance and compliance.

* Advancing digital certification and traceability.

* Enhancing transparency through data-driven monitoring.

* Building consumer trust in conflict-free diamonds.

In addition, an effort to review the definition of ‘conflict diamonds’ would help address other issues like human rights violations, child labour, and the environmental impact of diamond mining.

Moreover, the KP does not create legally binding obligations, as it is a voluntary scheme that depends on the mutual cooperation of participants. The only sanction for the failure to comply is the removal of a country’s KPCS membership.

At times, the Kimberley Process also faces criticism for lacking a robust and transparent mechanism to verify the origin and traceability of diamonds, raising concerns about the possibility of certificates being forged or manipulated.

Hence, there is a need to enhance the monitoring and verification system. Enhanced engagement with artisanal communities and civil societies would further help strengthen the tripartite structure of the KPCS and ensure that the diamond trade contributes positively to local development.

Post read questions

Natural resources have often been associated with violent conflicts. Examine this statement with reference to ‘conflict diamonds’ and the emergence of the Kimberley Process.

Despite the establishment of the Kimberley Process, concerns remain regarding human rights violations and environmental damage in diamond mining. Discuss.

As chair of the Kimberley Process, what role can India play in strengthening global diamond governance? What are the challenges and opportunities for India in reforming the global governance framework for diamond trade?

The regulation of conflict minerals requires cooperation between governments, industry, and civil society. Discuss this in the context of the tripartite structure of the Kimberley Process.

Natural resources can be both a blessing and a curse. Discuss with reference to conflict or blood diamonds and global governance mechanisms.

(Renuka is a Doctoral researcher at Himachal Pradesh National Law University, Shimla.)

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