India’s Reform Agenda for the Kimberley Process

The Kimberley Process Certification Scheme (KPCS) is the primary global mechanism designed to prevent the trade in conflict diamonds. It operates through national enforcement by participant countries, allowing trade in rough diamonds only among certified members that meet agreed standards. Each shipment must be accompanied by a Kimberley Process certificate, supported by statistical reporting on production and trade. While India is not a diamond producer, its central role in the global diamond value chain places it in a strong position to influence meaningful reforms.

How the Kimberley Process Works

The KPCS permits trade in rough diamonds exclusively between participant countries that comply with its certification and control requirements. Major producers such as Angola, Botswana, Canada, Congo, Namibia and Russia account for over 85 per cent of global rough diamond production by volume and value. India, despite having no domestic mining, imports nearly 40 per cent of global rough diamond trade. As the world’s largest cutting and polishing hub, concentrated in Surat and Mumbai, India exports polished diamonds to markets including China, Hong Kong, Israel, the United Arab Emirates and the United States.

Limitations in the Definition of Conflict Diamonds

The Kimberley Process faces long-standing criticism over its narrow definition of “conflict diamonds”. Currently, it focuses only on diamonds used by rebel groups to finance conflict against legitimate governments. This excludes state-linked violence, human rights abuses, environmental damage, exploitation in artisanal mining, and illicit trafficking networks. Civil society organisations also question the consensus-based decision-making system, where political vetoes can block determinations on conflict diamonds, limiting the scheme’s effectiveness.

Lessons from Past Enforcement Actions

The experience of the Central African Republic, which was banned from exporting rough diamonds in 2013 and readmitted in 2024, highlights structural weaknesses. Export embargoes without parallel support measures often increase smuggling and exacerbate violence instead of resolving conflict. There is also disagreement within the KP on whether state-related violence should fall within its mandate, despite widespread acknowledgement that mining communities require protection.

Important Facts for Exams

• The Kimberley Process Certification Scheme regulates global trade in rough diamonds.
• Only KP-certified countries can legally trade rough diamonds with each other.
• India imports around 40 per cent of global rough diamond trade.
• The definition of “conflict diamonds” under KP is limited to rebel-financed conflicts.

India’s Pathway for Reform and Africa Focus

India can broaden the KP agenda by forming a technical working group on violence and human rights risks beyond rebel insurgencies, building consensus before any redefinition. It can promote digital, tamper-proof KP certificates using blockchain technology to reduce fraud and improve transparency. Establishing regional KP technical hubs in African producing regions would strengthen capacity through training, IT support and forensic tools. By aligning KP objectives with Sustainable Development Goals and ensuring diamond revenues support local development, India can help reshape the KP into a more inclusive, transparent and development-oriented multilateral framework.