The Gems and Jewellery sector in India isn’t just about exquisite designs and craftsmanship — it’s a powerhouse industry contributing significantly to the nation’s economy and export growth. With rising global demand, strong government support, and expanding market opportunities, this sector is poised for incredible growth in the coming years.
India’s Gems & Jewellery at a Glance
India’s gems and jewellery market was valued at Rs. 7,31,255 crore (US$ 85 billion) in early 2025 and is projected to grow to Rs. 11,18,390 crore (US$ 130 billion) by 2030. Exports of gems and jewellery have been on an upswing, supported by favourable trade deals and rising consumer demand worldwide.
The sector remains a major contributor to India’s GDP — accounting for around 7% of the country’s economic output — and employs nearly five million people across manufacturing, cutting, design, and retail segments.
Key Drivers of Growth
Rising Global Demand
India is a global hub for cut and polished diamonds, gold jewellery, and precious gemstones, and demand continues to grow in major markets such as the US, UK, and the Middle East. Innovative designs from Indian artisans and organized retailers have expanded the industry’s global footprint.
Increased Investments
Foreign investment has flowed steadily into the sector, with cumulative FDI in diamonds and gold ornaments reaching over Rs. 13,273 crore (US$ 1.47 billion). Major brands like Malabar Gold & Diamonds have also invested heavily in manufacturing facilities — catalysing local industry growth.
Policy Support Boosts Competitiveness
The Government of India has played a pivotal role in creating an enabling environment — from allowing 100% FDI under the automatic route to signing free trade agreements with countries like the UAE and the UK, eliminating import duties and offering Indian exporters a competitive edge.
Transformative Industry Developments
India’s gems and jewellery sector isn’t sitting still — it’s evolving fast:
- Luxury brands are embracing digital retailing, expanding reach beyond traditional showrooms.
- Diamond gemstone players are expanding certification systems and traceability to meet global quality standards.
- Strategic trade partnerships and MoUs with trading partners like Thailand are accelerating export opportunities.
These developments highlight how the industry is leveraging technology, branding, and international linkages to compete globally.
Challenges on the Horizon
Even as growth surges, the industry faces headwinds:
- Export performance has seen volatility in recent periods due to global market demand fluctuations.
- Higher tariffs in key export markets have at times dampened overseas demand for certain products such as polished diamonds (though negotiations continue).
Yet, these challenges are balanced by strong domestic demand and continued government initiatives to enhance competitiveness.
The Road Ahead: Opportunities and Future Outlook
Looking forward, India’s gems and jewellery sector is poised for dynamic expansion. With policy support, rising global consumption, and increasing participation of organized retail players, the industry is expected to continue its upward trajectory, transforming into a major contributor to exports and employment by 2030 and beyond.
India’s creative heritage, coupled with modern design sensibilities and international collaborations, sets the stage for an industry that not only shines in value but also reflects craftsmanship that’s distinctly Indian.
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