Indian Gem & Jewellery Exports Maintain Stability, US Trade Deal Boosts Outlook

India's Gem & Jewellery Sector: A Resilient Path to Global Growth

Navigating Global Economic Currents: Indian Gem and Jewellery Exports

Between April 2025 and January 2026, India's gem and jewellery exports exhibited robust stability, recording a total of US$23.19 billion. This period was characterized by marginal fluctuations, with a slight decrease in dollar valuation but a positive appreciation in rupee terms, underscoring the industry's innate strength despite external pressures. The sector adeptly countered global trade challenges and tariff barriers in key export markets, highlighting its intrinsic resilience.

The Impact of US Market Dynamics on Export Performance

A significant factor influencing the overall export figures was the considerable reduction in shipments to the United States, which traditionally serves as India's primary destination for gem and jewellery exports. This downturn was largely attributable to heightened tariffs and a resultant loss of price competitiveness for Indian goods in the American market, posing a temporary setback for exporters.

A New Era for Trade: The India-US Agreement's Promise

The recent announcement of a comprehensive trade framework between India and the United States marks a transformative moment for the industry. This agreement, critically reinstating an 18% tariff rate for gems and jewellery and eliminating duties on diamonds and coloured gemstones, is a welcome development. Experts predict this tariff adjustment will significantly enhance India's competitive standing against international rivals, potentially stimulating an additional US$3 billion in exports in the near future.

Strategic Market Expansion and Global Footprint

In response to the temporary impediments in the US market, India proactively engaged in a strategy of market diversification. This initiative yielded impressive growth in various regions, including a 23.71% increase in exports to the United Arab Emirates, a 33.5% surge to Hong Kong, and over 36% growth in both Australia and France. Furthermore, double-digit growth was observed in Belgium, Thailand, and Israel, reflecting India's expanding global presence and the sector's adaptability to evolving international trade patterns.

Strengthening the Sector: Domestic Reforms and Future Vision

Complementing its outward-looking trade strategies, India's gem and jewellery sector has benefited from significant domestic policy reforms. The Union Budget for 2026–27 introduces measures aimed at simplifying business operations, streamlining customs procedures, expediting clearances, and improving access to financial resources. Initiatives such as digital appraisals, advance filing for import declarations, concessional sales from Special Economic Zones to Domestic Tariff Areas, and targeted support for Micro, Small, and Medium Enterprises are designed to reduce operational costs, boost cash flow, and sharpen export competitiveness. These reforms are foundational to achieving the sector's ambitious long-term goal of reaching US$100 billion in exports by 2047, fostering sustained growth and employment opportunities.