Gem And Jewellery Industry and Exports

Government Initiatives

Under the Taxation and Other Laws (Amendment) Act, 2026, companies engaged in trading rough diamonds in specially notified areas have been granted income-tax exemption for 15 years, supporting the development of India as a global rough diamond trading hub.

The Bharat Ratnam Mega Common Facility Centre at SEEPZ, Mumbai, spread across 1.25 lakh sq. ft., provides advanced facilities including 3D printing, casting and refining to support the gems and jewellery industry.

The India Jewellery Park is expected to attract around Rs. 50,000 crore (US$ 5.29 billion) in investment and generate one lakh direct and indirect employment opportunities. The Maharashtra Government has also provided incentives including stamp duty exemption, electricity concessions and enhanced subsidy rates.

The Government is supporting the development of the lab-grown diamond ecosystem, with a focus on establishing the complete value chain in India, including manufacturing of machinery, production of lab-grown diamonds, jewellery manufacturing and development of Indian brands for global markets.

The Department of Commerce, in association with the Gem & Jewellery Export Promotion Council, organised the Chintan Shivir – 2040 Roadmap for Gems & Jewellery, targeting an increase in India’s gems and jewellery exports to US$ 100 billion by 2040. The roadmap focuses on value addition, innovation, global design leadership, branding and expanding market access.

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.