India’s gems and jewellery sector plays a pivotal role in the country’s economy, contributing approximately 7% to the Gross Domestic Product (GDP). This thriving industry supports over five million skilled and semi-skilled workers and ranks third in India’s total merchandise exports, accounting for about 15.71% of the country’s export share. Despite a decline in growth of 15.31% in 2023-24 compared to the previous year, the sector remains a cornerstone of India’s export economy, with exports reaching USD 29.61 billion.
Government Initiatives and Focus
The Indian government, in collaboration with various stakeholders, is committed to enhancing the export of gems and jewellery. This includes addressing challenges faced by exporters, especially small and medium-sized enterprises (SMEs), exploring new markets, and consolidating existing ones. The sector has been identified as a priority for export promotion, reflecting its strategic importance in the ‘Made in India’ campaign.
Key Export Commodities
India is renowned for exporting a wide range of gems and jewellery products:
- Cut and polished diamonds
- Lab-grown synthetic diamonds
- Coloured gemstones
- Synthetic stones
- Plain and studded gold jewellery
- Silver and platinum jewellery
- Imitation jewellery
The Western region of India is particularly significant, contributing nearly 74.66% of the total exports. Surat, Gujarat, stands out as a global hub for jewellery manufacturing, hosting over 450 organised manufacturers, importers, and exporters.
Global Export Trends
India holds a prominent position in the global gems and jewellery market:
- It accounts for about 4.3% of the world’s total exports, ranking sixth globally.
- The country leads in the export of cut and polished diamonds, silver jewellery, and synthetic diamonds, with shares of 26.5%, 29.8%, and 29% respectively.
- India ranks fourth in coloured gemstones with a 5.1% global share.
For the fiscal year 2024 (until February), the sector’s exports totaled USD 29.61 billion. The Department of Commerce has set an ambitious target of USD 75 billion for future exports, supported by trade-friendly policies and a conducive export environment.
Major Export Destinations
In 2023-24, the top export destinations for Indian gems and jewellery were:
- USA: USD 9.1 billion
- UAE: USD 7.4 billion
- Hong Kong: USD 6.4 billion
- Belgium: USD 1.9 billion
- Israel: USD 723.63 million
These countries represent significant markets for Indian jewellery, with the USA being the largest importer. Notable growth in exports was also observed in Belgium, Singapore, Switzerland, and the Netherlands, reflecting a resurgence in global demand.
Government Support and Future Outlook
The Indian government has introduced several measures to support the sector, including:
- Revamping the gold monetization scheme
- Reducing import duties on gold and cut & polished diamonds
- Implementing mandatory hallmarking
- Providing financial assistance for setting up production and design centers
The Gems and Jewellery Export Promotion Council (GJEPC), established in 1966, plays a crucial role in promoting Indian jewellery globally. The council focuses on enhancing brand India, fostering trade connections, and supporting innovation and infrastructure development.
India’s gems and jewellery sector not only strengthens the country’s export economy but also significantly supports the ‘Made in India’ campaign. With robust government initiatives, strategic export targets, and a global reputation for quality and craftsmanship, the sector is poised for continued growth and international success. As the industry adapts to evolving market trends and opportunities, it will remain a key player in showcasing India’s excellence on the global stage.
