Curbs on Russian diamonds by G7 to have minimal impact on India: Govt

Indian officials are continuously in touch with the G7 technical team, an official said. Notably, G7 has imposed curbs on direct imports of Russian-origin diamonds.

The government on Friday said G7 nation's decision to impose curbs on direct imports of Russian-origin diamonds will have a minimal impact on India's diamond trade, a government official said on Friday.

Indian officials are continuously in touch with the G7 technical team on the issue and they have managed to resolve certain issues like checking of diamonds at only one place.

The G7 leaders have decided to introduce import restrictions on non-industrial diamonds, mined, processed, or produced in Russia, from January 1, 2024, followed by further phased restrictions on the import of Russian diamonds processed in third countries from March 1, 2024.

Commerce Secretary Sunil Barthwal said as long as diamonds are processed in India, there should not be further checks on that because India can maintain tracking of rough diamonds.

"In that respect perhaps, it is a respite to our diamond industry. They will not be put through double check," he said.

Explaining further, joint secretary in the commerce ministry Vipul Bansal said India is in touch with the technical team of G7 and as India is a key stakeholder in this diamond business, "our major concerns have been addressed".

He said according to the G7 statement from March 1, they will not accept Russian diamonds that are one carat and above and from September 1, it will be reduced to 0.5 carat, along with traceability system that will be launched.

"Most of the Russian diamonds that we cut and polish are essentially less than 0.5 carat, so the impact will be a bit less than we anticipate," Bansal said, adding, "India does not import diamonds directly from producing countries but (it imports) from mixing centres like those in Antwerp, Israel, UAE and Ireland".

"Nearly 99 per cent of the diamonds are not coming to us directly. So, if they come via UAE or G7 node, it actually does not make difference to us... Let me assure you that, we are at work and there will be minimal disruption to trade," he added.

The Gem and Jewellery Export Promotion Council (GJEPC) has recently raised concerns on the G7 decision and has urged for more flexibility in these timelines.

G7 countries -- Canada, France, Germany, Italy, Japan, the UK, and the US -- are major markets for Indian diamond exports.