India to Chair Kimberley Process

Syllabus: GS2/IR

Context

• India has assumed the chair of the Kimberley Process (KP) for the year 2026. 
  • The chair oversees the implementation of the Kimberley Process Certification Scheme (KPCS) and operations of the working groups, committees and administration that activate the KP.

Kimberley Process (KP)

• The KP is a multinational mechanism or structure for governing the trade of ‘conflict diamonds’.
  • These are rough (or pre-polished) diamonds which are used illegally by rebel or insurgent groups across the world to undermine or threaten legitimate governments. 
• The KP was initiated in 2000 when the countries of southern Africa initiated dialogues to prevent the trade in conflict diamonds. 
• Negotiations with 37 signatory parties, in 2003, led to the Kimberley Process Certification Scheme (KPCS). 
  • KPCS is the mechanism the KP uses to prevent the trade of conflict diamonds. 
  • It is enforced individually by KP Participant countries to ensure that rough diamonds in the legitimate supply chain are KP-compliant.
• The KP has 60 participants, representing 86 countries, and accounts for approximately 99.8% of the global rough diamond production.

Trade in Rough Diamonds

• The trade is permitted only between certified KP members who comply fully with these international standards. 
• Obligations for Countries: Participant countries are obliged to share timely and accurate statistical data for diamond production and trade.

• Major Producer: Angola, Botswana, Canada, Congo, Namibia and Russia alone account for more than 85% of the production of rough diamonds, in quantity and value terms. 
• Though India is not a producer, it is a major importer of rough diamonds, importing roughly 40% of the total global imports.
  • India is a leading cutting and polishing hub, centered in Surat and Mumbai. 
  • India re-exports polished diamonds to major markets which include China, Hong Kong, Israel, the United Arab Emirates and the United States. 
• India’s Relevance to KP: India’s strategic position, at the heart of the global diamond value chain, gives it unique leverage within the KP to steer meaningful reforms in global diamond governance.

Concerns

• Definition of Conflict Diamonds: Its scope is very narrow, capturing only the financial mechanism between rebel groups and governments, while ignoring the illicit use of rough diamonds in state-linked abuses, human rights violations and human trafficking, environmental harm, abuses in artisanal mining, and illicit trade channels.
• Decision Making Process: Consensus-based system allows any participant to exercise a political veto, this weakens enforcement and credibility of KP decisions.

How India can Bring Reforms?

• Agenda Expansion: As KP Chair, India can form a technical working group on violence and human rights risks beyond rebel insurgencies, building evidence and consensus before any redefinition of “conflict diamonds,” without reopening political deadlocks.
• Technology-Led Transparency: India can leverage its digital strengths to introduce tamper-proof, blockchain-based KP certification, with unique, time-stamped shipment records and harmonised customs data exchange to curb fraud and modernise KP operations.
• Capacity Building over Punitive Measures: Establish regional KP technical hubs in central and eastern Africa to provide training, IT support, certification assistance and forensic capacity, making compliance collaborative rather than coercive.
• Institutional Accountability Reforms: Promote independent or third-party audits for selected KP participants and push for full public disclosure of granular KP statistics to enhance credibility and trust.
• From Restriction to Responsibility: Reorient KP’s narrative from merely blocking conflict diamonds to enabling a responsible, inclusive and community-benefiting diamond trade, ensuring revenues support health, education and local infrastructure in mining regions.

Source: TH