India Engages with EU, G7 on Ban of Russian Diamond Imports to Safeguard Surat's Sector

Surat, Apr 1 - The Indian government is actively addressing the potential impact of the European Union (EU) and G7 nations' ban on imports of Russian-origin unpolished diamonds, a move that poses a significant threat to India's diamond polishing industry, predominantly based in Surat, Gujarat. External Affairs Minister S. Jaishankar highlighted the government's efforts to mitigate the effects of this ban during an interaction in Surat.

Representative image

The ban, initiated in early March as part of sanctions against Moscow following its invasion of Ukraine, targets the import of Russian diamonds through third countries. "Our effort is to delay the initial stage of the ban, soften it, and ideally prevent it from happening at all. This issue has become a priority for us, and we are seeking solutions," Jaishankar stated.

Addressing concerns about the detrimental effects on Surat's diamond industry, which is responsible for polishing 90% of the world's rough diamonds, Jaishankar emphasized the government's proactive stance. The EU, consisting of 27 members, along with the G7 group of wealthy nations, have both moved towards imposing these sanctions. "The countries imposing these bans are merely consumers; their employment is not at stake. Their objective is to impact Russia, but this situation is distinct from the issue of blood diamonds," he noted.

Prime Minister Narendra Modi has personally engaged with various leaders on this matter, including discussions with Belgium, which currently holds the EU's rotating presidency. "Sanctions have been imposed on 1-carat diamonds. A ceasefire between Russia and Ukraine could resolve this issue, though it appears unlikely in the near future. If the conflict persists, it will pose challenges for India's diamond industry," Jaishankar added.

The minister also revealed recent diplomatic efforts, including PM Modi's conversation with Belgian Prime Minister Alexander De Croo and upcoming discussions by Union Commerce Minister Piyush Goyal. These dialogues aim to convey to the EU and G7 that their sanctions inadvertently harm third parties, not just their intended target.

Beyond the diamond industry, Jaishankar touched upon challenges faced by Surat's textile sector due to competition from Bangladesh and Vietnam. He highlighted that negotiations for a Free Trade Agreement with the EU could offer significant benefits to this sector.

Furthermore, Jaishankar advocated for India's integration into new global supply chains and emphasized leveraging India's reputation for trustworthiness in the digital realm. This approach counters the China Plus One strategy, encouraging diversification away from Chinese manufacturing to mitigate risks.

In conclusion, Jaishankar's remarks underscore a comprehensive strategy by the Indian government to navigate through international sanctions impacting its industries while exploring avenues for growth and global integration.