Gems and Jewellery Industry Analysis

India’s gems & jewellery exports are expected to reach US$ 100 billion by 2027.

Advantage India

Growing
Demand

* On October 31, 2025, India’s gold exchange-traded funds (ETFs) surpassed Rs. 1,00,000 crore (US$ 11.80 billion) in Assets Under Management (AUM) with net inflows of over Rs. 27,500 crore (US$ 3.05 billion) and a surge in investor participation, reflecting widening investor interest and diversification.

* Total gold holding reached 77.3 tonnes till September 2025, with 7.3 tonnes added in the same month.

Increasing
Investments

* RBI’s gold purchases reached 57.5 tonnes in FY25 and was the second highest purchase in seven years from December 2017.

* Malabar Gold & Diamonds has opened its largest jewellery manufacturing facility in Hyderabad with an investment of Rs. 1,000 crore (US$ 116 million).

* Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 13,273 crore (US$ 1.47 billion) between April 2000-June 2025.

Policy
Support

* The Government has permitted 100% FDI under the automatic route in this sector.

* India has signed an FTA with UAE which will further boost exports and is expected to reach the target of US$ 52 billion.

* India has signed Economic Cooperation and Trade Agreement (ECTA) with Australia.

* The India-UK Free Trade Agreement is expected to more than double India's gems and jewellery exports to the UK, reaching Rs. 21,183 crore (US$ 2.5 billion) within the next two years.

Attractive
Opportunities

*India’s gold demand stood at 135 tonnes in Q2 2025 with full year forecast ranging between 600 to 700 tonnes, displaying opportunities for the sector to tap into the growing demand.

Snapshot Showcase Infographics Reports

Last updated: Nov, 2025

Gems and Jewellery Industry Report

Nov, 2025

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 November 2025, India's Gems & Jewellery exports stood at Rs. 22,663 crore (US$ 2.51 billion) a growth of 19.64% as compared to Rs. 18,871 crore (US$ 2.09 billion) in November 2024.

During FY26 (April-November 2025), India's gems and jewellery exports stood at Rs. 1,70,287 crore (US$ 18.86 billion).

As of November 2025, cut and polished diamonds accounted for the highest share of exports (46.6%), followed by gold jewellery (39.3%) and silver jewellery (4.6%).

In FY26 (April-November 2025), India’s cut and polished diamond exports stood at Rs. 73,984 crore (US$ 8.19 billion).

The overall gross export of cut & polished diamonds stood at Rs. 8,298 crore (US$ 919 million) in November 2025.

In FY26 (April-November 2025), exports of gold jewellery stood at Rs. 71,600 crore (US$ 7.93 billion) whereas imports stood at Rs. 6,376 crore (US$ 726 million).

India’s gold demand in Q2 FY26 stood at 209.4 tonnes with full year forecast ranging between 600 to 700 tonnes.

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-November 2025), overall gross imports of Gems & Jewellery stood at Rs. 17,065 crore (US$ 1.89 billion).

The total imports of Gems & Jewellery in November 2025 stood at Rs. 1,24,781 crore (US$ 13.82 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.

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 in India stood at Rs. 13,273 crore (US$ 1.47 billion) between April 2000-June 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