Subrahmanyam Jaishankar, the Minister of External Affairs of India, recently commented on the disruption caused by sanctions imposed by the European Union and G7 nations on the import of Russian diamonds. The measures, which began in March, have sent ripples through India’s diamond processing and cutting sectors, highlighting how global policy moves can directly influence a country’s industries. The remarks emphasize a shared concern among policymakers that these sanctions are reshaping trade flows and market dynamics in precious stones within South Asia. (Cited: Economic Times)
Jaishankar underscored that the Government of India prioritizes resolving the issues stemming from the EU and G7 restrictions on rough diamond imports from Russia. The aim is to minimize the negative impact on India’s diamond processing and cutting industry, which relies heavily on the steady availability of rough diamonds for polishing and finishing. The minister indicated continued efforts to engage through collective and bilateral talks to address the concerns and seek practical solutions. The emphasis is on achieving a timely resolution that can safeguard jobs, investment, and the competitiveness of Indian diamond workers in global markets. (Cited: Economic Times)
The Russian Federation has historically been the largest producer of rough diamonds, a status that has significant implications for the world supply chain. In 2022, Russia’s rough diamond exports were substantial, contributing to billions of dollars in revenues and shaping pricing and availability for manufacturers worldwide. The recent sanctions add another layer of complexity for buyers and sellers in India who depend on Russian rough to feed their cutting and polishing operations. Industry observers note that any shift in supply from traditional producers tends to accelerate changes in sourcing strategies and inventory management across the Indian diamond sector. (Cited: Economic Times)
Before these measures, sanctions-related restrictions were already shaping the broader diamond trade along European corridors, with multiple market players reporting adjustments in sourcing and compliance requirements. The evolving policy landscape has encouraged Indian firms to explore alternative suppliers and to optimize their supply chains to maintain production continuity. This adaptation process includes evaluating the reliability of new streams of rough diamonds, ensuring quality, and maintaining timelines for delivery to downstream artisans and retailers. (Cited: Economic Times)
On the consumer front, shifts in jewelry demand have also been observed, with occasional changes in spending patterns during periods of policy tightening. Market analysts caution that while consumer sentiment can wobble under global tension, the longer-term emphasis remains on maintaining transparent trade practices, preserving trust in certification, and supporting domestic craftsmanship. In India, jewelers and manufacturers have been working closely with regulators, trade groups, and financial institutions to navigate the regulatory environment while continuing to meet international standards. (Cited: Economic Times)