The Indian government has prioritized addressing the ban on imports of Russian-origin unpolished diamonds by the European Union (EU) and G7 nations, as it poses a threat to the domestic diamond polishing industry primarily centered in Gujarat's Surat city, External Affairs Minister S Jaishankar emphasized on Monday.
The EU and G7 initiated the ban on imports of Russian-origin diamonds through third countries in early March as part of sanctions against Moscow in response to its invasion of Ukraine. Jaishankar expressed the government's determination to delay, soften, or ideally prevent the ban altogether, considering it a critical issue. He reassured that efforts would be made to find a resolution in the upcoming days.
During an interaction with young business leaders organized by the Disha Foundation in Surat, Jaishankar addressed concerns regarding the potential impact of the ban on the Surat diamond industry, which handles 90 percent of the world's rough diamonds. He highlighted that the 27-member EU has enforced sanctions on Russian diamond imports, with G7 nations also moving in a similar direction.
Jaishankar clarified that the countries implementing the ban are solely consumers of Russian rough diamonds, and their economies are not reliant on them. He distinguished the issue from blood diamonds and mentioned Prime Minister Narendra Modi's efforts in raising concerns with various leaders and sending delegations, including to Belgium, the current holder of the EU's rotating presidency, for discussions.
At present, sanctions have been imposed on 1-carat diamonds, with the possibility of resolution contingent upon a ceasefire between Russia and Ukraine, though such an outcome appears unlikely in the near future. The minister disclosed that Prime Minister Modi recently engaged with the Belgian Prime Minister Alexander De Croo, with Union Commerce Minister Piyush Goyal set to follow up on discussions in the coming days.
Jaishankar underscored the government's endeavor to convey to the EU and G7 nations that their decision adversely impacts third parties rather than the intended target, Russia. Regarding challenges faced by the Surat textile industry from Bangladesh and Vietnam, he highlighted the potential benefits of entering into a Free Trade Agreement with the EU, which would aid in addressing these challenges.
During the interaction, Jaishankar advocated for a strategy focusing on integrating into the evolving global supply chain and leveraging India's reputation for reliability to establish a presence in the digital realm, rather than merely adopting a 'China Plus One' approach. This strategy encourages diversification of supply chains and manufacturing activities away from China to mitigate risks.
Read also | Seizing Opportunities: Zoho CEO Urges Global Entrepreneurs to Invest in India Now
