India Emerges as Challenger to Belgium in Diamond Verification Role

A recent report on moneycontrol.com highlighted India's growing suitability for this crucial task, given its substantial imports and processing of rough diamonds. Advocates argue that India's proximity to major diamond-producing countries in Africa, coupled with its established infrastructure, makes it a natural and efficient choice for diamond verification.

The implementation of new regulations, originally set to begin on September 1, 2024, has been postponed by six months to March 1, 2025. These regulations mandate rigorous tracking of diamond origins, a process initially overseen by Antwerp. However, stakeholders within the Indian diamond industry have vehemently advocated for India to assume this pivotal role.

"The Indian diamond lobby has been advocating strongly for India to become the central nodal point for diamond verification," noted moneycontrol.com. "Routing diamonds through India could potentially reduce transit times and mitigate delays, offering a smoother alternative to the global diamond supply chain compared to routing through Belgium."

This proposed shift comes amid resistance from various stakeholders, including African diamond producers and industry giants like De Beers, who oppose Antwerp's monopoly over the verification process. The debate underscores broader concerns across the diamond pipeline about the implications of centralizing verification in Belgium versus diversifying responsibilities to other key hubs like India.

As discussions continue, the prospect of India assuming a pivotal role in diamond verification marks a potential reconfiguration of global trade dynamics within the diamond industry.