Indian Diamantaires Rally to Protect Diamond Industry Amid G7 Import Restrictions

Mumbai and Surat, the epicenter of the global diamond trade where approximately 80% of the world's diamonds are polished, will host this high-stakes visit. The Indian diamond industry, represented by diamantaires and the Gems and Jewellery Export Promotion Council (GJEPC), intends to articulate the significance of Russian diamond imports to India during this crucial visit.

By TBT Web Desk On Sep 26, 2023

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Surat : As representatives from the United States and its G7 allies, including Belgium, gear up for a visit to Mumbai and Surat from September 27 to September 29, India’s diamond industry is preparing to make a compelling case concerning the potential ramifications of imposing import restrictions on rough diamonds from Alrosa, the Russian state diamond mining company.

Mumbai and Surat, the epicenter of the global diamond trade where approximately 80% of the world’s diamonds are polished, will host this high-stakes visit. The Indian diamond industry, represented by diamantaires and the Gems and Jewellery Export Promotion Council (GJEPC), intends to articulate the significance of Russian diamond imports to India during this crucial visit.

India currently consumes 30% of Russian rough diamonds, a vital component of its total rough diamond imports. An estimated $4 billion worth of rough diamonds from Alrosa finds its way into the bustling markets of Surat and Mumbai. The Indian concern lies in the potential loss of livelihood for thousands of diamond artisans in Gujarat, particularly in Surat, if the sale of Russian diamonds and their jewelry is banned.

Ramesh Jilria, President of the Diamond Workers Union Gujarat, and Vice President Bhavesh Tank have drawn attention to the dire situation in Surat, the heart of diamond manufacturing.

They highlighted that 28 diamond artisans have tragically taken their lives due to the global recession. Delegations from foreign countries visiting Mumbai and Surat have expressed their willingness to meet with diamond workers’ associations to gain insight into the challenges faced by the industry.

The G7 countries have been actively working on a tracing system designed to allow them to block imports of stones mined in Russia, which is the world’s largest producer of rough gems. Belgian officials, given the significance of Antwerp as the leading diamond trading hub globally, anticipate the G7’s announcement of an import ban in the coming weeks, further tightening the squeeze on Russia’s capacity to finance the ongoing conflict in Ukraine.

In response to the impending import restrictions, both Indian and Russian diamond companies have opted to halt diamond trade temporarily. This move aims to avoid Western scrutiny of the source of cut and polished diamonds and diamond jewelry in Surat, the hub of finished diamond production.