Indian officials, led by India’s External Affairs Minister Subrahmanyam Jaishankar, are advocating for the establishment of a diamond screening center within the nation’s borders. The call comes amidst concerns over the impact of new sanctions imposed by the Group of Seven (G7) nations. These sanctions have tightened controls on the trade of Russian goods, prompting officials to highlight the need for a local screening facility to alleviate mounting challenges.
The reliance on a single-entry point in Belgium, exacerbated by the recent G7 sanctions, has sparked apprehension among Indian exporters. They argue that this centralized process is driving up costs and jeopardizing employment opportunities within the industry.
Exporters in India express alarm over the repercussions of the sanctions, citing significant delays in shipments and a notable surge in the prices of rough diamonds. The Gem and Jewellery Export Promotion Council (GJEPC) has reported shipping delays of up to three weeks due to the stringent trade restrictions.
With approximately two-thirds of India’s diamond exports destined for G7 nations, compliance with the verification requirements at Antwerp’s Diamond Office poses a formidable obstacle. Indian officials advocate for the establishment of a dedicated screening center within the country, asserting that such a facility would streamline the verification process and mitigate logistical challenges.
In a parallel development, the Gem and Jewellery Export Promotion Council (GJEPC) has released its monthly diamond trade data for March 2024, as per Rough & Polished reports. According to the data, gross exports of polished diamonds experienced a significant decline of 27.4% year-on-year, amounting to $1.164 billion for the month. The downturn persisted throughout the fiscal year, with polished exports plummeting by 27.6% between April and March, totaling $15.966 billion.