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 2025, 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. India’s Gems & Jewellery exports are expected to reach US$ 100 billion by 2027. The country is also the second-largest consumer of gold jewellery globally, with gold demand forecast to reach 600-700 tonnes in 2025.

In FY26 (April-July 2025), India’s overall net exports of Gems & Jewellery stood at Rs. 63,248 crore (US$ 7.4 billion), while overall imports were valued at Rs. 60,684 crore (US$ 7.1 billion). Exports of gold jewellery during this period stood at Rs. 30,769 crore (US$ 3.6 billion), reflecting a YoY growth of 23.74%, whereas imports of gold jewellery were Rs. 1,709 crore (US$ 200 million). As of July 2025, cut and polished diamonds accounted for the highest share of exports (49.49%), followed by gold jewellery (37.53%) and silver jewellery (12.97%). In Q2 2025, gold demand was 135 tonnes, with the full-year forecast in the 600-700 tonnes range.

During FY25, India’s net gems and jewellery exports stood at Rs. 2,00,000 crore (US$ 23.4 billion), while net imports were Rs. 1,68,376 crore (US$ 19.7 billion). 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.

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.

Policy support has also been significant. The Government has permitted 100% FDI in the sector under the automatic route, removing the need for prior approval from the Reserve Bank or Government of India. Cumulative FDI inflows in diamond and gold ornaments stood at Rs. 12,337 crore (US$ 1.43 billion) between April 2000 and March 2025. 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. Earlier, in Union Budget 2021, the Gem and Jewellery Export Promotion Council had proposed a reduction in import duty on cut and polished diamonds to 2.5% from 7.5% to help double exports to US$ 70 billion by 2025.

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.