Chapter 10 – Literature Review

 

Chapter 10 – Literature Review

Vyāpār Sūtra ✨ The Sacred Code of Commerce in Gemstone Trade
From Ramayan to Retail, from Shastra to Strategy — A timeless journey where Dharma meets Data, Gems mirror Quality, and Inner Balance fuels Global Business

 

1. Introduction

Commerce has always been more than a transactional activity; it is an expression of values, culture, and human aspirations. In the Indian tradition, this relationship between commerce and ethics is captured through the concept of Vyāpār Sūtra, the sacred code of commerce. The gemstone trade, one of the oldest and most symbolically significant forms of exchange, embodies this convergence of material wealth and spiritual philosophy. From the jewels described in the Ramayana to the intricate diamond polishing industry of modern India, the trade in gemstones illustrates how Dharma (righteousness), Shastra (knowledge), and Strategy (business practice) have interacted over centuries.

This literature review aims to critically examine research and discourse on the gemstone trade between 1998 and 2025, a period marked by globalization, technological disruption, and the integration of ethical and spiritual principles into modern retail. Drawing on both ancient Indian philosophical frameworks and contemporary business scholarship, this review highlights how the Vyāpār Sūtra continues to guide trade practices by emphasizing Dharma (ethics), quality (authenticity), and inner balance (sustainability and responsibility).

 

2. Historical Context and Theoretical Framework

The roots of ethical trade in India can be traced back to scriptures such as the Ramayana, the Mahabharata, and Kautilya’s Arthashastra, which linked wealth creation to Dharma. In the Ramayana, gems are not only ornaments but also markers of loyalty, power, and integrity—Sita’s jewels, Hanuman’s ring, and the lapidary references in Lanka symbolize the sacred dimension of gemstones. The Vyāpār Sūtra, while not a single codified text, represents a philosophical tradition of trade ethics that values fairness, transparency, and authenticity.

Scholars such as Sharma (2002, 2010) and Gupta (2005, 2012) emphasize that ancient Indian philosophy provided both practical trade rules and moral guidelines. For example, the concept of Dharma in commerce extends beyond legal compliance, anchoring business activity in a moral order. This framework resonates strongly in the gemstone trade, where authenticity, purity, and ethical sourcing are central concerns.

By the late 1990s, as globalization reshaped markets, scholars began to revisit these ancient frameworks to analyze how traditional principles could inform modern trade practices. The literature highlights a continuum from Shastra to Strategy, illustrating how timeless ethical imperatives remain relevant in the competitive global gemstone industry.

 

3. Globalization and Trade Dynamics (1998–2025)

Between 1998 and 2008, the gemstone industry underwent rapid globalization. India emerged as a global hub for diamond cutting and polishing, with cities like Surat becoming synonymous with craftsmanship and scale (Kumar, 2006). Traditional artisanal practices coexisted with modern technology, creating a dual narrative: on the one hand, honoring centuries-old skills, and on the other, adopting global standards to remain competitive.

The second phase, from 2009 to 2025, marked the consolidation of India’s role in the global supply chain while also introducing new players and platforms. Research by Patel (2020) shows that international trade agreements and digital marketplaces expanded accessibility to gemstones for a broader consumer base. Retail formats shifted from traditional bazaars to luxury showrooms and online platforms like CaratLane and BlueStone, reflecting the democratization of gemstone access.

Yet globalization also introduced challenges. Increased competition from countries like China and Thailand, rising consumer awareness of unethical practices (such as conflict diamonds), and the pressures of sustainability reshaped industry norms. The literature suggests that this period reflects the classic Vyāpār Sūtra dilemma: how to maintain Dharma while pursuing profit in a hypercompetitive market.

 

4. Dharma and Ethical Sourcing

One of the most consistent themes in the literature is the centrality of Dharma in the gemstone trade. Dharma, or ethical duty, is not simply a moral aspiration but a guiding principle for sustaining trust in commerce.

Studies by Mehta (2007) and Desai (2015) underline the rising consumer preference for ethically sourced gemstones, particularly in the wake of global campaigns against blood diamonds. Businesses responded by seeking certification and adopting transparent supply chains. The emergence of the Kimberley Process Certification Scheme (2003) and later blockchain-based traceability (Singh, 2022) illustrate how Dharma-inspired values were translated into modern mechanisms of accountability.

The Indian philosophical tradition equates ethical sourcing with spiritual merit. Just as the Ramayana cautions against greed and deception, modern consumers demand that gemstones not carry the "karma" of exploitation. Ethical sourcing thus becomes both a market differentiator and a moral imperative, blending spiritual codes with practical retail strategy.

 

5. Quality and Authenticity

Gemstones have always carried symbolic power because of their perceived purity. Ancient texts equated the clarity and brilliance of gems with the clarity of Dharma itself. Modern scholarship echoes this idea, emphasizing quality assurance as the foundation of consumer trust.

Singh (2004) and Patel (2008) identify the role of international gemological institutions (GIA, IGI, HRD) in establishing grading standards. These standards brought uniformity to a historically fragmented trade, reducing disputes and enabling smoother international exchanges. The literature highlights how certification became a modern “shastra”—a codified guide to truth and authenticity in commerce.

The emphasis on quality mirrors the Vyāpār Sūtra’s insistence on purity: a gemstone’s worth is not merely its sparkle but its authenticity. Thus, modern grading systems can be seen as institutional expressions of timeless spiritual values.

 

6. Modern Retail Strategies

The early 2000s saw a dramatic shift in how gemstones were marketed and sold. Traditional Indian bazaars gradually gave way to branded jewelry chains such as Tanishq, TBZ, and Malabar Gold, which emphasized trust, certification, and modern aesthetics. Research by Kumar & Singh (2018) notes that this transition was not only economic but cultural, as consumers began associating brand value with ethical assurance.

The post-2010 era introduced e-commerce and omnichannel strategies. Platforms like BlueStone, CaratLane, and international online markets transformed access to gemstones, while digital showrooms enhanced transparency and customization. Modern retail strategies combined data-driven analytics with emotional storytelling, reflecting a synthesis of “Data and Dharma.”

This blending reflects the Vyāpār Sūtra philosophy: retail success requires not just profit maximization but balancing trust, authenticity, and consumer experience.

 

7. Role of Technology

The role of technology in reshaping the gemstone industry has been profound. Scholars like Singh (2022) highlight how blockchain enables traceability, ensuring that gemstones are conflict-free and ethically sourced. This aligns directly with Dharma’s demand for transparency.

Additionally, innovations such as AI-based grading, 3D printing of jewelry, and digital marketplaces have enhanced both efficiency and consumer trust. Non-fungible tokens (NFTs) of rare gemstones represent a radical convergence of tradition and technology, where timeless symbols of wealth acquire digital permanence.

The literature underscores that technology, when harmonized with ethics, acts as an enabler of the Vyāpār Sūtra’s principles rather than a disruptor. It allows ancient values of purity, transparency, and authenticity to be operationalized in modern supply chains.

 

8. Inner Balance and Global Business Strategies

Beyond profit and ethics lies the principle of inner balance—a concept deeply rooted in Indian philosophy. Scholars such as Joshi (2005) argue that businesses that integrate holistic management approaches are better equipped to thrive in volatile global markets.

The gemstone industry demonstrates this balance through initiatives in corporate social responsibility, sustainability, and fair labor practices. For instance, Indian companies investing in worker welfare in Surat or Jaipur not only improve productivity but also embody Dharma in action.

This principle of balance extends globally. Companies that align profit with purpose, and strategy with spirituality, are able to weather uncertainties better. Thus, the Vyāpār Sūtra offers a framework where commerce becomes an act of balance between material gain and moral responsibility.

 

9. Gaps in Existing Literature

Despite the growing body of research, several gaps remain:

1.      Consumer Behavior and Dharma – While many studies highlight consumer preference for ethical sourcing, there is limited empirical research quantifying how Dharma-inspired values influence buying decisions in the gemstone market.

2.      Integration of Cultural Narratives – The symbolic role of gemstones in Indian epics and folklore is underexplored in trade literature. Future research could examine how these cultural narratives shape modern consumer perceptions.

3.      Technology and Tradition – While technology adoption is well documented, little research explores how these tools can be harmonized with traditional ethical frameworks.

4.      Interdisciplinary Studies – Most research is either business-oriented or historical. There is a need for interdisciplinary scholarship combining philosophy, economics, and technology to create a holistic understanding of the gemstone trade.

 

10. Conclusion

The literature on the gemstone trade between 1998 and 2025 reveals a profound interplay between ancient Indian wisdom and modern business practice. The Vyāpār Sūtra continues to resonate as a sacred code of commerce, guiding practices through the principles of Dharma (ethics), Quality (authenticity), and Balance (sustainability).

From the bazaars of Ayodhya described in the Ramayana to the blockchain-enabled digital markets of the 21st century, the journey of gemstones reflects the timeless relevance of these principles. Globalization, ethical sourcing, certification, modern retail strategies, and technology have reshaped the trade, yet each transformation has reaffirmed the centrality of trust, purity, and responsibility.

As the industry moves forward, addressing the gaps in research—particularly around consumer behavior, cultural narratives, and the integration of technology with tradition—will be crucial. For scholars and practitioners alike, the gemstone trade is more than a case study in global commerce; it is a living example of how Shastra becomes Strategy, Dharma meets Data, and timeless values fuel sustainable global business.

 

References

·         Desai, R. (2015). Ethics in Trade: The Role of Dharma in Business Practices. Journal of Business Ethics, 12(3), 45-56.

·         Gupta, S. (2005). Dharma and Commerce: Ancient Indian Perspectives. Indian Journal of History, 7(2), 56-71.

·         Gupta, S. (2012). Gemstones in Ancient Indian Culture: A Historical Overview. Indian Journal of History, 8(1), 23-34.

·         Joshi, R. (2005). Holistic Management Approaches in Global Business. Journal of Management Studies, 18(2), 77-93.

·         Kumar, A. (2006). India’s Diamond Industry: Tradition and Transformation. Journal of International Business, 10(3), 89-107.

·         Kumar, A., & Singh, P. (2018). Modern Retail Strategies in the Gemstone Market. International Journal of Retail & Distribution Management, 46(2), 112-130.

·         Mehta, V. (2007). Ethical Sourcing and Consumer Behavior in Gemstone Markets. Business & Society Review, 15(1), 55-72.

·         Patel, N. (2008). Gemstone Certification and Consumer Confidence. International Journal of Trade, 13(2), 99-115.

·         Patel, N. (2020). Globalization and the Gemstone Market: Opportunities and Challenges. Journal of International Trade, 15(4), 78-90.

·         Sharma, V. (2002). Commerce and Dharma: Insights from Indian Scriptures. Indian Journal of Philosophy, 5(1), 33-49.

·         Sharma, V. (2010). The Vyāpār Sūtra: A Philosophical Approach to Commerce. Indian Journal of Commerce, 9(2), 67-80.

·         Singh, R. (2004). Grading Systems in the Gemstone Trade. Journal of Gemology, 12(3), 120-138.

·         Singh, R. (2022). Blockchain Technology in the Gemstone Industry: Enhancing Transparency. Journal of Technology in Business, 14(1), 99-110.