Gem And Jewellery Industry and Exports

Government Initiatives

India’s gems and jewellery sector continues to demonstrate resilience and growth momentum, supported by strategic diversification and proactive government measures. Exports recorded a 3.86–4% year-on-year increase in February 2026, driven by expansion into new markets such as the UAE, Australia and Europe, aided by Free Trade Agreements (FTAs) and reduced dependence on traditional markets. At the policy level, the India–US interim trade agreement framework, with revised tariff structures and duty benefits on diamonds and coloured gemstones, is expected to enhance price competitiveness and potentially boost exports by up to US$ 3 billion in the near term. Additionally, government-led initiatives including customs reforms, ease of doing business measures, digitalisation, concessional finance access and SEZ policy support are improving liquidity, reducing transaction costs and strengthening export competitiveness. The sector has also benefited from broader trade agreements such as EU and UK FTAs, which are opening new growth avenues and supporting long-term export expansion, positioning India as a more competitive global hub for gems and jewellery.

The Government of India (GoI) has taken various measures to promote investment for the growth of the sector, such as the gold monetization scheme revamp, reduction in import duty of gold, reduction in import duty on cut & polished diamonds from 7% to 5% and implementing mandatory hallmarking. Under various other schemes, about 90% of assistance is provided by the government of India for setting up common production/processing centres, design centres, and testing plug & play facilities. Marketing hubs/exhibition centres by associations are also receiving the Government of India’s assistance of up to 80% of the project cost. Additionally, the government provides funding support for lending collateral-free credit and offers credit guarantee cover up to ~US$ 240,000 (Rs. 2 crore) to MSMEs under the Credit Guarantee Scheme (CGS) facilitated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Over 90% of units in the gems and jewellery sector are MSMEs.

The Government of India has recently laid out four steps to grow the gems and jewellery industry in the country. The focus is to be given to the creation of patented designs to increase value, diversification of the exported products, collaboration with other nations for cost-effective methods and promotion of lab-grown diamonds. In addition to this, the GJEPC (Gems Jewellery Export Promotion Council) arranges several trade shows, buyer-seller meets and expositions to increase the exposure of Indian goods.