In News:

Recently, India commenced the Kimberley Process (KP) Intersessional Meeting in Mumbai, marking its third tenure as the Chair of this critical global body. As the world’s leading hub for diamond cutting and polishing—where 14 out of every 15 diamonds are processed—India’s leadership is pivotal in shaping the future of ethical trade.

What is the Kimberley Process (KP)?

The Kimberley Process is a multi-stakeholder international initiative that brings together governments, the diamond industry, and civil society.

• Genesis: The initiative was sparked in May 2000 in Kimberley, South Africa, following global outcry over "blood diamonds." It was formally launched in January 2003 under UN General Assembly Resolution 55/56.
• Mission: Its primary mandate is to eradicate the trade in "conflict diamonds"—defined as rough diamonds used by rebel movements or their allies to finance armed conflict aimed at undermining legitimate governments.
• India’s 2026 Chairship: Having assumed office on January 1, 2026, India has adopted the theme of the "3Cs": Credibility, Compliance, and Consumer Confidence.

Kimberley Process Certification Scheme (KPCS)

The KPCS is the operational "engine" of the process, acting as a rigorous regulatory "passport" for rough diamonds.

• Core Requirements: Every shipment of rough diamonds crossing an international border must be transported in a tamper-resistant container and accompanied by a government-validated Kimberley Process Certificate.
• Exclusionary Principle: To maintain the integrity of the chain, member states are strictly prohibited from trading rough diamonds with any non-member or any participant that fails to meet the scheme's minimum requirements.
• Legislative Mandate: Participants are required to implement national laws and internal controls to prevent smuggling and ensure the legality of the supply chain.

India’s 2026 Agenda: Digitalization and Reform

As the Chair, India is steering the KP toward modernization to meet the challenges of the 21st-century digital economy.

• Blockchain Integration: A major priority of the Mumbai Intersessional is the transition toward digital, tamper-proof certificates. By utilizing blockchain technology, India aims to provide real-time traceability, significantly reducing the risk of document fraud.
• Ad Hoc Committee on Review and Reform (AHCRR): India is leading discussions to broaden the definition of conflict diamonds. While the current definition focuses on rebel groups, there is a growing global demand to include broader human rights violations.
• Technical Cooperation: India is focusing on capacity building for African diamond-producing nations, ensuring that the legitimate diamond trade continues to support the livelihoods of millions.

Key Functions of the Kimberley Process

Beyond certification, the KP performs several systemic functions:

• Periodic Peer Reviews: Working groups conduct on-site visits to member countries to verify compliance.
• Statistical Accountability: Member states are obliged to share detailed trade and production data to maintain transparency.
• Market Stabilization: By filtering out illicit diamonds, the KP ensures the stability of the legitimate market, protecting the economy of countries where diamonds are a major export.

In News:

India’s assumption of the chairmanship of the Kimberley Process Certification Scheme (KPCS) provides an important opportunity to strengthen global mechanisms aimed at preventing the trade in conflict diamonds. As one of the largest players in the global diamond value chain, India’s leadership in the Kimberley Process can enhance transparency, improve traceability, and reinforce responsible diamond trade.

Conflict Diamonds: Meaning and Background

• Conflict diamonds, also known as blood diamonds, refer to rough diamonds mined in war zones and sold by rebel groups or their allies to finance armed conflicts against legitimate governments.
• The term gained global attention in the 1990s, when diamonds were found to be funding violent conflicts in several African countries such as Angola, Sierra Leone, Rwanda, and Liberia.
• These diamonds often entered global markets through informal and illegal trade networks, making their origin difficult to trace and raising concerns about ethical sourcing in the international diamond trade.

Kimberley Process Certification Scheme (KPCS)

The Kimberley Process, established in 2003, is a multilateral and voluntary certification mechanism designed to prevent conflict diamonds from entering the legitimate global diamond market.

Key features include:

1. Certification System – Every shipment of rough diamonds traded between participating countries must carry a Kimberley Process Certificate, confirming that the diamonds are conflict-free.
2. Trade Restrictions – Participating countries are allowed to trade rough diamonds only with other members of the Kimberley Process.
3. Global Coverage – The Kimberley Process accounts for over 99% of global rough diamond trade, making it a crucial framework for responsible diamond governance.
4. Monitoring and Compliance – Members commit to implementing internal controls and reporting mechanisms to ensure transparency in diamond trade.

India’s Diamond Industry

India plays a central role in the global diamond value chain:

• Largest cutting and polishing hub in the world, especially in cities such as Surat.
• Major importer of rough diamonds for processing.
• Leading exporter of cut and polished diamonds, with exports valued at about $13.3 billion in 2024–25.
• Second-largest diamond consumer market after the United States.

The Gem and Jewellery Export Promotion Council (GJEPC) acts as the nodal agency for implementing Kimberley Process certification in India. It operates under the Department of Commerce, Ministry of Commerce and Industry and is responsible for issuing certificates for diamond exports and imports.

In News:

India has assumed the Chair of the Kimberley Process (KP) for the year 2026. This marks an important development in global diamond governance, as the KP regulates international trade in rough diamonds to prevent their use in financing armed conflicts.

What is the Kimberley Process?

The Kimberley Process is a tripartite coalition of governments, civil society and the diamond industry established to eliminate the trade in “conflict diamonds.”

Conflict Diamonds Defined

As per UN Security Council Resolution 1459, conflict diamonds are defined as:

“Rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments.”

The KP was established in 2003 based on a United Nations mandate to regulate global trade in rough diamonds.

Structure and Membership

• 60 participants, representing 86 countries (European Union counts as a single participant)
• Covers over 99% of global rough diamond production and trade
• Operates on a consensus-based decision-making mechanism
• Meets twice annually at:
  • Intersessional meetings
  • Plenary meetings
• Chairmanship rotates annually among participating countries

The KP functions through a tripartite structure involving governments, industry stakeholders and civil society groups.

Kimberley Process Certification Scheme (KPCS)

The operational mechanism of the KP is the Kimberley Process Certification Scheme (KPCS).

Key Features:

• Each shipment of rough diamonds must be accompanied by a Kimberley Process Certificate
• Shipments must be transported in tamper-resistant containers
• Trade is permitted only between participating countries
• Countries must establish:
  • National legislation
  • Import/export controls
  • Transparent statistical data exchange

The certificate verifies that the shipment is conflict-free and complies with KP minimum requirements.

India’s Role in the Kimberley Process

India has been an active participant in the KPCS since 2003. As one of the world’s largest diamond cutting and polishing centres, India plays a crucial role in the global diamond value chain.

Institutional Framework in India:

• Department of Commerce – Nodal department
• Gem & Jewellery Export Promotion Council (GJEPC) – Designated Importing and Exporting Authority
  • Issues KP Certificates
  • Custodian of certificates received in India

India’s chairmanship in 2026 provides an opportunity to strengthen transparency, improve traceability and enhance institutional credibility within the KP framework.