Kimberley Process Reform and India’s Role

The Kimberley Process Certification Scheme (KPCS) is the global mechanism designed to prevent trade in conflict diamonds. It regulates rough diamond exports through certificates issued by participant countries and requires compliance with common standards on traceability and reporting. India, though not a producer, is a major importer and the world’s leading cutting and polishing hub, giving it influence in the diamond value chain and in reform debates within the scheme.

What the Kimberley Process Does

The KPCS allows rough diamond trade only between certified participant countries. Each shipment must carry a Kimberley Process certificate. Members are also expected to share timely and accurate data on production and trade. Major producers include Angola, Botswana, Canada, Congo, Namibia and Russia, which together account for most rough diamond output.

India’s Strategic Position

India imports a large share of global rough diamonds and re-exports polished diamonds to markets such as China, Hong Kong, Israel, the United Arab Emirates and the United States. With cutting and polishing centres in Surat and Mumbai, India sits at the centre of the global diamond supply chain. This position gives it leverage to push for reforms in diamond governance.

Key Challenges in the KP

• The definition of conflict diamonds remains narrow and mainly covers rebel-financed violence.
• It does not fully address state-linked abuses, human rights violations, trafficking, environmental harm or illicit mining practices.
• Decision-making can be blocked by political veto, limiting effective action.
• Past embargoes, such as in the Central African Republic, have sometimes increased smuggling and violence.

Possible Reform Agenda

India can support technical reforms without reopening political disputes. These may include digital and tamper-proof certificates, harmonised customs data exchange, blockchain-based shipment records and stronger statistical transparency. It can also promote regional technical hubs in Africa, third-party audits in selected participants and broader civil society engagement. Linking diamond governance with livelihoods, decent work and community development can make the KP more inclusive and sustainable.