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.
The Latest
MajorsSep 08, 2026
Former Tiffany & Co. Exec Joins Exemplar Luxury GroupGretchen Koback Pursel is the new chief people officer at the company formerly known as Saks Global.
IndependentsSep 08, 2026
Ricky Bromberg, Longtime President of Bromberg & Co., Dies at 67 Bromberg is remembered as a Southern gentleman who always wore a suit and tie and treated others with kindness.
TrendsSep 08, 2026
Amanda’s Style File: A Hot Take on September’s Birthstone With high durability and a wide range of colors to choose from, sapphires may be the ultimate birthstone, Gizzi claims.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
ColumnistsSep 08, 2026
Peter Smith: Humor Is No Laughing MatterLaughter is often considered a distraction in the workplace, but it has benefits for both staff and management, Peter Smith writes.
Weekly QuizSep 03, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsSep 04, 2026
Orloff Jewelers Will Soon Unveil a Bigger, Better LocationThe California jeweler is renovating its store in Fresno, with plans to show off the new space in December.
CollectionsSep 04, 2026
Chelsea Gabrielle Transforms Pilates Reformer Springs Into Ring A lifelong practitioner of Pilates, Gabrielle looked to the springs’ tension and suspension when creating this ring, our Piece of the Week.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
Events & AwardsSep 04, 2026
JCK Industry Fund Accepting 2027 ApplicationsThe deadline to apply is Nov. 13.
AuctionsSep 04, 2026
Christie's Names New Global Head of WatchesThe auction house has promoted Remi Guillemin, formerly its head of watches for the Americas and EMEA, to the role.
EditorsSep 03, 2026
Q&A: Simon G.’s CEO on Why He Won’t Use AI for Jewelry DesignZaven Ghanimian discussed the value of human craftsmanship and where the implementation of artificial intelligence does work.
Events & AwardsSep 03, 2026
Here Are the First Recipients of Nina Pugliese Memorial Scholarship Jewelers of America also revealed the recipients of the Seymour & Evelyn Holtzman Bench Scholarship and its own scholarship programs.
WatchesSep 03, 2026
Robert Pattinson Joins Jaeger-LeCoultre as Brand AmbassadorThe British actor, known for his roles in “Twilight” and “The Odyssey,” will star in a campaign for the Master Control Chronometre.
CollectionsSep 03, 2026
Sydney Evan Celebrates 25 Years With 4 New CollectionsThe “Confetti Disco,” “Champagne Cheers,” “Tuxedo,” and “Classic Punk” jewelry collections each capture a distinct spirit of celebration.
CrimeSep 02, 2026
CA Jeweler Gets 5 Years in ‘Phantom Rolex’ Ponzi SchemeNelson Holdo of Newport Beach pleaded guilty to multiple counts of felony grand theft and writing bad checks and was sentenced Monday.
AuctionsSep 02, 2026
If You Love Cats, This Jewelry Auction Is for YouCat ladies of the jewelry world, unite. Sandy Lerner’s “significant” collection of cat jewelry and other objects is going up for auction.
MajorsSep 02, 2026
Messika Names Former Omega Exec as New President, CEO of AmericasArnaud Michon, the former Omega USA President, will now lead Messika’s Americas region during its international development.
Events & AwardsSep 02, 2026
Emerald’s New Owner Introduces ‘Glitter in the Grove’The branding references the back-to-back jewelry shows that new parent company Forge will host in Miami's Coconut Grove this November.
AuctionsSep 01, 2026
UK Woman Uncovers Rare Patek Philippe Watch in Mom’s Jewelry BoxThe stainless steel Patek Philippe “Calatrava” watch from the 1930s sold for nearly $80,000 at a recent Hansons Cornwall auction.
ColumnistsSep 01, 2026
Your Jewelry Marketing Has a Bridal ProblemEngagement rings are important but don’t ignore the customers who are buying jewelry “just because,” Emmanuel Raheb writes.
MajorsSep 01, 2026
Kering Names New Pomellato, DoDo CEOsFormer Pomellato CEO Sabina Belli has been named president of Kering Italia amid a shakeup of Kering's new Jewelry division.
MajorsSep 01, 2026
Anne Marie Shulman Joins GPA GlobalThe veteran luxury packaging executive was appointed to help the company grow its North American business.
CrimeAug 31, 2026
$4M Van Cleef & Arpels Diamond Necklace Snatched From Vienna Museum Once the property of an Egyptian queen, the necklace was part of a larger exhibition of VCA jewelry at the Museum of Applied Arts (MAK).
GradingAug 31, 2026
GIA, Gübelin Gem Lab Confirm New Paraíba Tourmaline Deposit in EthiopiaThe labs’ separate investigations each determined that the East African country is producing copper-bearing tourmaline.
Events & AwardsAug 31, 2026
Wisconsin Museum to Host Jewelry Exhibition“Chicago Collects: Jewelry in Perspective” at the Oshkosh Public Museum will feature works by Fabergé, Lalique, and Louis Comfort Tiffany.
CollectionsAug 31, 2026
Catbird Launches First Men’s Jewelry CollectionThe “Worn Well” collection is Catbird's take on classic men's jewelry.
CollectionsAug 28, 2026
Dolly Parton Would Have Loved This Butterfly Necklace This Buddha Mama butterfly is our Piece of the Week honoring the legend, who embraced the beautiful insect as her symbol.
