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.
More on Sourcing
The Latest
CollectionsDec 05, 2025
Piece of the Week: Robinson Pelham’s ‘Tsar Star’ EarringsThe new pink sapphire version of the piece dances with its wearer in the brand’s “Icons After Dark” holiday campaign.
TrendsDec 05, 2025
Pantone’s Color of the Year for 2026 Is … WhiteA choice that’s generated a lot of commentary, Pantone says “Cloud Dancer” marks a fresh start and encourages relaxation and creativity.
MajorsDec 05, 2025
Stuller Releases ‘Wrapped in Wonder’ CampaignThe manufacturer’s holiday campaign features a gift guide filled with trending designs and jewelry that can be personalized.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
CrimeDec 04, 2025
Man Arrested After Allegedly Swallowing Fabergé Egg PendantThe man was charged with theft, accused of ingesting the necklace while in a jewelry store in Auckland, New Zealand.
Weekly QuizDec 04, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsDec 04, 2025
Step Inside JR Dunn Jewelers’ Giant New Store The Florida independent expanded its store from 8,000 to 14,000 square feet, fulfilling the vision of its late co-founder, Jim Dunn.
Supplier BulletinDec 04, 2025
Introducing Shop Natural Day: A New Movement Celebrating Natural DiamondsSponsored by De Beers Group
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
WatchesDec 04, 2025
Casio Shrinks its G-Shock WatchThe classic 5600 series G-Shock has been scaled down to about a tenth of its size, becoming a fully functioning watch ring.
Events & AwardsDec 04, 2025
AGA Announces 2026 Tucson Speaker LineupThe association’s annual conference and gala will take place Feb. 4, 2026, during the Tucson gem shows.
Events & AwardsDec 04, 2025
CBG Announces Speaker Lineup for 2026 Miami Event The January show will include a workshop for jewelry retailers on implementing AI to strengthen their businesses.
TrendsDec 03, 2025
Miley Cyrus Debuts Edgy Engagement RingFellow musician Maxx Morando proposed to the star with a chunky, cushion-cut diamond ring designed by Jacquie Aiche.
Policies & IssuesDec 03, 2025
Costco Joins Growing Wave of Retailers Suing for Tariff Refunds The retailer, which sells billions in fine jewelry and watches, is suing the Trump administration and U.S. Customs and Border Patrol.
SurveysDec 03, 2025
A Record 202.9M Shoppers Turned Out Thanksgiving WeekendBlack Friday is still the most popular shopping day over the five-day holiday weekend, as per the National Retail Federation’s survey.
AuctionsDec 03, 2025
Fabergé’s 'The Winter Egg' Achieves Record $30MThe historic egg, crafted for Russia's ruling family prior to the revolution, was the star of Christie’s recent auction of works by Fabergé.
FinancialsDec 02, 2025
Signet Jewelers’ Q3 Sales Up Amid Continued Focus on Lower Price PointsThe retailer offered more fashion jewelry priced under $1,000, including lab-grown diamond and men’s jewelry.
CollectionsDec 02, 2025
Briony Raymond Introduces First FragranceThe eau de parfum is held in a fluted glass bottle that mirrors the decor of the brand’s atelier, and its cap is a nod to its “Sloan” ring.
MajorsDec 02, 2025
Lee Krombholz Takes Over as Chair of MJSA Education FoundationIn addition, a slate of new officers and trustees were appointed to the board.
IndependentsDec 02, 2025
RJO Welcomes Its 1,200th Retail MemberWitt’s Jewelry in Wayne, Nebraska, is the organization’s new milestone member.
CrimeDec 01, 2025
Fourth Man Charged in Louvre Jewelry HeistThe man, who has a criminal history, is suspected of being the fourth member of the four-man crew that carried out the heist.
AuctionsDec 01, 2025
Christie’s Presents ‘Splendor & Style’ CollectionThe single-owner collection includes one of the largest offerings of Verdura jewels ever to appear at auction, said Christie’s.
IndependentsDec 01, 2025
Lustig Jewelers’ New Owner Is a Fellow Chicago JewelerMichael Helfer has taken the reins, bringing together two historic Chicago jewelry names.
MajorsDec 01, 2025
PGI Debuts Platinum-Filled Holiday Gift GuideThe guide features all-new platinum designs for the holiday season by brands like Harwell Godfrey, Ritani, and Suna.
FinancialsNov 26, 2025
Movado CEO Talks Tariffs, Growing Interest in Accessible Luxury WatchesDuring its Q3 call, CEO Efraim Grinberg discussed the deal to lower tariffs on Swiss-made watches, watch market trends, and more.
TrendsNov 26, 2025
Piece of the Week: Rosior’s Pumpkin RingRosior’s high jewelry cocktail ring with orange sapphires and green diamonds is the perfect Thanksgiving accessory.
IndependentsNov 26, 2025
Greenwich St. Jewelers Launches Colorful Holiday CampaignThe “Embrace Your True Colors” campaign features jewels with a vibrant color palette and poetry by Grammy-nominated artist Aja Monet.
MajorsNov 26, 2025
Serafino Consoli Names New VP of Sales, Brand Development for the AmericasLuxury veteran Alejandro Cuellar has stepped into the role at the Italian fine jewelry brand.
