India is planning to establish diamond verification centers to safeguard its diamond processing sector from potential restrictions imposed by the Group of Seven (G7) nations. The G7 has proposed creating diamond traceability hubs in Belgium to prevent the sale of Russian diamonds within its member countries, raising concerns among Indian diamond producers about increased export costs. In response, India has suggested setting up traceability centers in Surat or Mumbai, major diamond processing centers, citing its significant role in processing a majority of the world’s rough diamonds. The Indian government has engaged with the European Commission and formed a committee to negotiate with European authorities. The G7’s plan to curb Russian diamond trade includes a phased approach, with a complete ban on non-industrial diamonds from Russia effective January 1st, followed by restrictions on diamonds processed outside Russia but above one carat from March 1st. Indian diamond exports have declined in recent months due to the conflict in Ukraine and sanctions on Russia, which previously supplied about one-third of India’s rough diamonds. India’s polished diamond exports between April 2023 and March 2024 saw a 27.6% decrease compared to the same period the previous year. India accounted for 4.3% of global gem and jewelry exports in 2022, surpassing China’s share.
India to Establish Diamond Verification Centres Amid G7 Ban Threat
