India, which cuts and polishes eight out of every ten diamonds globally, already has the necessary infrastructure and expertise to efficiently handle the screening and profiling of rough diamonds.
In the face of looming sanctions on Russian diamonds, India has emerged as a key player in the global diamond industry's efforts to adapt and thrive. As the world's largest importer of rough diamonds, India has proactively stepped forward with a constructive proposal that aims to optimize the logistics and ease the burden on the industry.
At a recent meeting in Brussels, senior Indian government officials, trade body representatives, and customs authorities presented their case to the European Union. They emphasized India's strategic position and infrastructure as an ideal checkpoint to verify the origin of diamonds, including those mined in Russia, before they enter the affluent markets enforcing the sanctions.
"We believe the EU is examining the proposal," stated a person familiar with the discussions, highlighting India's readiness to play a vital role in the implementation of the sanctions.
The Indian industry, led by the Gem & Jewellery Export Promotion Council (GJEPC), has formulated a counter-proposal to the idea of making Belgium the sole node for diamond certification. They argue that India, which cuts and polishes eight out of every ten diamonds globally, already has the necessary infrastructure and expertise to efficiently handle the screening and profiling of rough diamonds.
"DeBeers has mines in different countries. Does it make sense for a stone to move from a mine in Namibia to Belgium for certification before travelling back to Botswana? This can impact the global industry alignment. Instead, the entire process, in a different way, can happen in an alternative node like India which has hundreds of scanners and expert manpower. It can be a less disruptive solution," said a trader.
The Indian industry has also urged the G7 and EU to push back the implementation of the sanctions from the initially proposed September 2024 to mid-2025, citing the need for a smoother transition and adaptation.
Interestingly, the recent elections at the Antwerp World Diamond Centre (AWDC) saw a significant representation of Indian industry players, with five out of the six newly elected board members hailing from India. This underscores the growing influence and recognition of the Indian diamond trade in the global arena.
As the world navigates the complex landscape of sanctions and trade regulations, India's proactive and constructive approach demonstrates its commitment to finding innovative solutions that benefit the entire diamond industry. This collaborative effort aims to ensure the smooth flow of diamonds while maintaining the integrity of the global supply chain.
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