Gems and Jewellery Industry Analysis

India's Gems and Jewellery sector significantly contributes to the national economy, accounting for about 7% of GDP and 7-9% of total merchandise exports. As of January 2026, the market size stood at Rs. 7,31,255 crore (US$ 85 billion) and is projected to expand to Rs. 11,18,390 crore (US$ 130 billion) by 2030. The Government of India aims to reach US$ 100 billion in jewellery exports over the next few years (until 2027), up from US$ 35 billion in 2020. The country is also the second-largest consumer of gold jewellery globally. India’s gold demand is projected to remain in the range of 600–700 tonnes in 2026, with rising investment demand offsetting weaker jewellery consumption due to elevated gold prices.

In FY27 (April–May 2026), the overall gross exports of gems and jewellery stood at Rs. 40,398.97 crore (US$ 4.27 billion).

India’s gem and jewellery exports have remained broadly stable during FY26 (April-March) at Rs. 244827.26 crores (US$ 27.72 billion).

As of April 2025-March 2026, cut and polished diamonds accounted for the largest share of gems and jewellery exports at 43.87%, followed by gold jewellery (including plain and studded gold jewellery) at 41.00%, and silver jewellery at 5.29%.

In FY26 (April-March 2026), India’s cut and polished diamond exports stood at Rs. 1,07,461.34 crores (US$ 12.16 billion).

The overall gross export of cut & polished diamonds stood at Rs. 9,378.53 crore (US$ 980.73 million) in May 2026.

In FY26 (April – March), India's Gems & Jewellery exports stood at Rs. 244827.26 crores (US$ 27.72 billion).

India’s gold demand is projected to remain in the range of 600–700 tonnes in 2026, with rising investment demand offsetting weaker jewellery consumption due to elevated gold prices.

Growth in exports was largely driven by revived demand in the US and successful order fulfilments by Indian exhibitors at the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. Additional momentum came from tie-ups with embassies, international associations, and free trade agreements (FTAs) with markets such as the UAE and UK.

In FY26 (April-March), overall gross imports of Gems & Jewellery stood at Rs. 2,02,120.40 crore (US$ 22.84 billion).

The India-UK Free Trade Agreement is expected to more than double India's Gems & Jewellery exports to the UK, reaching Rs. 21,183 crore (US$ 2.5 billion) within the next two years. The FTA removes import duties of 2.5-4% on plain gold and diamond jewellery entering the UK, reducing them to zero. This gives Indian exporters a competitive edge and is expected to double exports to the UK within two to three years.

In May 2026, India and the UAE reaffirmed their commitment to strengthen their economic partnership and expand bilateral trade to US$ 200 billion by 2032 under the India-UAE CEPA, with gems and jewellery remaining one of the key sectors driving bilateral trade.

Australia will eliminate tariffs on 100% of Indian exports from January 1, 2026, significantly boosting sectors like gems and jewellery under ECTA.

Policy support has also been significant. India allows 100% FDI under the automatic route in the gems and jewellery sector, including gold and diamond processing and trading, subject to applicable regulatory conditions. Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 9,962.78 crore (US$ 1.55 billion) between April 2000-March 2026.

Hallmarking has been made mandatory for gold jewellery and artefacts, with one year provided for implementation. India currently has 10 dedicated SEZs for Gems & Jewellery, hosting more than 500 manufacturing units that contribute around 30% of total exports. The Revised SEZ Act is also expected to provide further impetus to exports.

Budgetary announcements have played a role in shaping the sector. In the Union Budget 2024-25, the government proposed a reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4%. In contrast, the Union Budget 2023-24 proposed an increase in import duty on silver dore, bars, and articles to 10% to align them with gold and platinum. In the latest Union Budget 2026, customs duties on gold and silver were kept unchanged at around 6%, maintaining stability in the precious metals market, while proposed reductions on cut and polished diamonds remain largely unimplemented.

India’s Gems and Jewellery sector is on a strong growth trajectory, supported by rising global demand, policy reforms, and expanding export opportunities. With increasing investments, trade agreements, and steady domestic consumption, the industry is well-positioned to achieve its ambitious growth targets. Looking ahead, India is set to further strengthen its position as a global hub for gems and jewellery, driving value creation, employment, and long-term economic growth.