Why in News?
India currently holds the chairmanship of the Kimberley Process Certification Scheme (KPCS) — an important global initiative often discussed in UPSC coaching in Hyderabad while analysing international trade regulations and ethical sourcing.
Conflict Diamonds
• Conflict diamonds, also called blood diamonds, are rough diamonds used to finance rebel groups and armed conflicts.
• These diamonds were widely reported during the 1990s civil wars in African countries such as Sierra Leone, Angola, and Liberia.
• They entered global markets through illegal trading networks, making origin tracking difficult.
• International pressure led to the creation of global certification mechanisms to regulate the trade.
Kimberley Process Certification Scheme
• Established in 2003 through collaboration between governments, industry, and civil society.
• It is a voluntary international certification system to regulate the trade of rough diamonds.
• Currently includes over 80 participating countries, covering more than 99% of global rough diamond trade.
• Each shipment of rough diamonds must carry a Kimberley Process Certificate confirming it is conflict-free.
• Trade with non-participating countries is prohibited, ensuring strict monitoring of diamond exports and imports — a topic often covered in IAS coaching in Hyderabad while preparing international economic relations.
India’s Role in the Global Diamond Industry
• India is the largest diamond cutting and polishing centre in the world.
• The country processes nearly 90% of the world’s rough diamonds by volume.
• India exported about $13 billion worth of cut and polished diamonds in 2024–25.
• The Gem and Jewellery Export Promotion Council (GJEPC) implements the Kimberley Process in India.
Importance of the Kimberley Process
• Prevents illegal and conflict-driven diamond trade.
• Promotes ethical sourcing and transparency in the global diamond market.
• Protects the reputation of the global jewellery industry.
• Helps maintain consumer confidence in diamond products, an important issue often analysed in UPSC online coaching and civils coaching in Hyderabad while studying global trade governance.
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