Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact SourcingApr 10, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires
There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.
The inside of Asian Star’s facility in India. Like other large Indian diamond manufacturers, Asian Star said it is prepared to comply with the G7’s ban on Russian diamonds but noted the tighter regulations could burden smaller players.
Mumbai—There are three new Cs that have been foremost in the minds of most Indian diamantaires over the past two months: compliance, caution, and concern.
While the importance of each “C” varies from company to company, together they reflect the three critical issues directly impacting the Indian diamond industry.
Currently, compliance with the new, more stringent rules governing exports of Russian diamonds of 1 carat and above to G7 countries that kicked in March 1 takes center stage.
But caution in navigating the unpredictable global market and concern over the “one import node” mechanism, also known as the “rough node,” for certification of all non-Russian diamonds proposed to be implemented by G7 countries later in the year are also widespread.
The industry is not taking the sanctions lightly, though goods in the 1-carat-plus sizes are estimated to account for only about 10 percent of the total volume manufactured in India, a figure that may rise to about 20 percent when the cutoff is reduced to half a carat later this year.
Most Russian goods manufactured in India are in smaller sizes (below 0.50 carats).
“We have been gearing up for these new rules,” Vipul Shah, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC), said recently.
“We have been gearing up for these new rules,” Vipul Shah, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC), said recently.
GJEPC Executive Director Sabyasachi Ray explained that the council has issued an advisory to its members stating that from March 1, they should coordinate closely with buyers to ensure that all export parcels for goods of over 1 carat are accompanied by an official self-declaration as per “each country/ importer/buyer’s requirement.”
He said the GJEPC has shared proposed formats for these declarations and set up a help desk should any member require assistance in handling compliance issues.
Leading companies across the spectrum confirm they are adhering strictly to the new rules.
Nilesh Kothari of Jewelex India, a top exporter, said though the major part of their business is in smaller diamonds, the company has been issuing self-declarations where applicable since 2022, backed by appropriate paper trails.
“We will continue to do so as long as these are required,” he said.
Rahil Shah of Asian Star, another large exporter, emphasized that the company also has always been transparent and compliant with legal requirements in buyer countries.
Asian Star does not export significant quantities of large diamonds, he also noted.
“Our aim is to add a layer of confidence to the purchaser,” he explained, by using self-declarations for individual stones, or in some cases “a parcel-to-parcel mechanism,” always supported by “a definite invoice trail from the point of purchase of rough.”
Devansh Shah, a partner at Venus Jewel, noted that the company already had implemented a transparent process.
“Through our online portal, buyers have access to detailed information regarding the selection of goods, particularly emphasizing G7 shipping eligibility. This transparency empowers buyers. Additionally, upon request, we provide necessary declarations, ensuring compliance with G7 standards where applicable.”
He added, “To navigate the heightened restrictions effectively, we have prioritized maintaining clear visibility across our supply chain.”
However, he also points out that the in the run-up to the March 1 changes, “the lack of clarity on various crucial details from G7 and U.S. authorities led to confusion in the trade community.”
Many diamantaires have said that they were notified of the rules very late and there is still no clear indication how they are going to be implemented in practice.
Almost all agree that if the authorities begin verifying the paper trail for every import parcel, it will lead to disruption and delays; reports suggest this already is happening in Europe.
This will have cost implications too, Indian diamantaires stress, adding that market conditions have already forced margins downward.
The industry as a whole also has expressed reservations about the mechanisms being suggested for tracking origin of rough beginning Sept. 1.
GJEPC, on behalf of Indian diamantaires, has already joined the World Federation of Diamond Bourses, the World Diamond Council, and the International Diamond Manufacturers Association in pointing out that the process that has been proposed by G7—to track all rough through a “one-import node” mechanism, a system that would route all goods through Antwerp—will cause “irreparable harm to the non-Russian industry.”
The Indian trade is hopeful that the opinions outlined by the trade in a letter to G7 officials, and reservations expressed by mining countries and various other stakeholders, will be taken note of.
Indian diamantaires remain optimistic that the dialogue will yield results, pointing out that even the current decision to restrict sanctions to larger-sized diamonds took shape during a protracted process of interaction between G7 officials tasked with developing the system on the one hand and governments, trade bodies and individual companies that would be affected by their decisions, on the other.
An informal consensus seems to be taking shape among Indian diamantaires that while it may be feasible to track diamonds of 0.5 carats and above, restrictions on diamonds smaller than that would likely sound the death knell for large sections of the industry.
Manish Jiwani, a member of the GJEPC committee that looks into the interests of the Micro, Small and Medium Enterprises (MSMEs), which constitute some 80 percent of total manufacturing units, said, “In the case of smaller goods, it may not be feasible to track or certify origin of the stones as they go through multiple assortments at different stages.
“And, if at all a system is evolved, the costs will be prohibitive. Any step to make sanctions applicable below 0.50 carats can have disastrous consequences.”
Devansh Shah, of Venus Jewel, points out any increase in paperwork will have a substantial effect on artisanal miners and other small-scale participants in the supply chain, who may face increased barriers.
Asian Star’s Rahil Shah asserts that for small players, “the costs associated with additional paperwork have to be addressed.”
Diamantaires are now unsure what the future will bring.
Normally, the supply of goods to the U.S. market picks up in the last quarter of the year. But, with a veil of uncertainty shrouding import-export requirements after Sept. 1, no one is quite clear on what will happen.
“Market conditions have already made U.S. retailers more cautious about the volume of goods they need in stock. Currently restocking is at lower levels, and many are sticking to ‘just in time’ ordering,” said Kothari of Jewelex.
The trade is hopeful that U.S. demand will pick up the second half of the year, which makes it all the more important that a practical, realistic, and equitable mechanism for implementing sanctions emerges by then.
Editors' Picks
Sponsored by
More on Sourcing
The Latest
AuctionsMay 15, 2026
American Collector Ponies Up Almost $17K for John Wayne’s RingThe Western star’s 14-karat gold signet ring sold for six times its low estimate following a bidding war at U.K. auction house Elmwood’s.
Events & AwardsMay 15, 2026
JA, MJSA To Sponsor Roundtable at TJSThe discussion, "Rebuilding the Jewelry Workforce," will take place on Saturday, May 16, in Troy, Michigan.
AuctionsMay 14, 2026
White Diamonds Lead Sotheby’s Auction, Blue Diamond Does Not SellA matching pair of 18.38-carat, D-color diamonds from Botswana’s Jwaneng mine sold for $3.3 million, the top lot of the jewelry auction.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
Supplier BulletinMay 14, 2026
A Diamond Is Forever Continues Desert Diamonds – Bridal ReinvigoratedSponsored by A Diamond Is Forever
Weekly QuizMay 14, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsMay 14, 2026
‘Ocean Dream’ Makes Waves at Christie’s, Fetching $17MIt was the second auction appearance for the fancy vivid blue-green diamond, which sold for $7.8 million at Christie’s Geneva 12 years ago.
CrimeMay 14, 2026
Second Man Arrested in Florida Pawn Shop Shooting Members of the U.S. Marshals Task Force took a 22-year-old man into custody. He was charged with tampering with evidence.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeMay 13, 2026
JSA’s 2025 Crime Report Shows ‘Concerning’ Rise in ViolenceWhile the overall number of crimes was down, there were more incidences in which robbers pulled out guns, mace, or rammed cars into stores.
IndependentsMay 13, 2026
New Orleans Jeweler Closing Canal Place StoreJack Sutton Fine Jewelry is closing its store inside the downtown shopping center after 40 years in business.
SourcingMay 13, 2026
Smithsonian Acquires ‘Winston Red’ Diamond PaintingReena Ahluwalia’s painting of the rare red diamond is the first contemporary painting to join the National Gem Collection.
TrendsMay 13, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
ColumnistsMay 12, 2026
It’s Official: We’re Getting ‘Brain Rot’ From Watching Short-Form Videos Peter Smith gives tips on leading meetings, developing marketing, and making trade show appointments in the age of short attention spans.
CollectionsMay 12, 2026
Jessica McCormack Debuts Antique Coin-Inspired Medallions for SummerThe 11-piece “Medallions” capsule collection features five motifs: a crying eye, a heart on fire, a spiral, a flower, and a swallow.
IndependentsMay 12, 2026
State of Retail: 6 Things Retailers Should Know About Consumers TodayFrom Gen Z’s view of luxury to “doom spending,” these are the six consumer trends to note this year.
Events & AwardsMay 12, 2026
The Tiffany & Co. x CFDA Jewelry Designer Award Is BackThe partners have announced the second cycle of the program, which has expanded to include a $25,000 student scholarship.
IndependentsMay 11, 2026
Kansas Jeweler Closing After 70 YearsThe owners of Staats Jewelers are heading into retirement.
TrendsMay 11, 2026
Former Macy’s CEO Joins Signet Jewelers BoardJeffrey Gennette, who retired in 2024 after 41 years with Macy’s, is the newest member of the jewelry retailer’s board of directors.
TrendsMay 11, 2026
Amanda’s Style File: Lucky May May babies are lucky to have emeralds, a gemstone admired for centuries, as their birthstone, writes Amanda Gizzi.
TechnologyMay 11, 2026
Clientbook’s New Tool Helps Jewelers Plan In-Store EventsThe new module allows retailers to plan, promote, and measure the success of events from a single dashboard.
Lab-GrownMay 08, 2026
NDC Publicly Criticizes Pandora Over ‘Misleading’ Natural Diamond ClaimsNDC said in an open letter that Pandora’s statements about the carbon footprint of lab grown versus natural diamonds are inaccurate.
SourcingMay 08, 2026
Ronnie VanderLinden Takes Over as WDC President The diamantaire and industry leader succeeds Feriel Zerouki and said he will focus on being a “champion” for natural diamonds.
TrendsMay 08, 2026
Rihanna Chooses ‘Desert Diamonds’ for 2026 Met GalaShe wore our Piece of the Week, Glenn Spiro’s “Old Moghul Golconda” earrings, featuring fancy brown-yellow diamonds totaling 51.90 carats.
Events & AwardsMay 08, 2026
JA Announces 2026 CASE Award WinnersTwo pieces were named “Best in Show,” one from the retail category and one from the supplier category.
FinancialsMay 07, 2026
Brilliant Earth Appeals to Higher-Income Shoppers in Q1The jewelry retailer noted resilience among its higher-end customers while demand softened for its lower-priced offerings.
AuctionsMay 07, 2026
‘Spectacular’ Kashmir Sapphire Headlines Heritage Spring Jewelry SaleLed by the 6.59-carat sapphire, the sale garnered $9.7 million, a record total for a Heritage jewelry auction.
MajorsMay 07, 2026
Gannon & Scott Names New Regional Account ExecutiveIn his new role, sales specialist Billy Welshoff will focus on the eastern United States.
