India’s gems and jewellery export sector—which is one of the largest in the world—contributed 4.3% to global jewellery consumption in 2022. The market size of the global gems and jewellery sector is likely to expand to US$ 103.06 billion by 2023. India’s gems and jewellery exports are expected to reach US$ 100 billion by 2027. Globally, India was the top exporter of diamonds with a share of 33% in 2021. India is the second largest gold jewellery consumer in the world and India’s gold demand gold is expected to reach 800 - 900 tonnes in 2024.

Total exports during April to December 2024 accounted for Rs. 1,83,696 crore (US$ 21.36 billion). In April-December 2024, cut and polished diamonds accounted for the highest share of exports (50.19%), followed by gold jewellery (29.15%) and lab grown diamonds (5.17%).

In December 2024, India's gems and jewellery exports stood at Rs. 16,981 crore (US$ 1.97 billion).

The total imports of gems and jewellery in December 2024 amounted to Rs. 12,992.3 crores (US$ 1,526.95 million).

Growth in exports is mainly due to revived import demand in the export market of the US and the fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. Furthermore, the tie-ups with different embassies and associations, along with various Free Trade Agreements (FTA) with UAE, UK, etc. have helped in the growth of exports of the gems and jewellery sector.

In the fourth quarter of 2022, demand for gold stood at 219.7 tonnes. The second quarter of 2021 was better for businesses as establishments were better prepared for lockdowns compared with 2020. Total jewellery demand in terms of volume increased by 25% YoY to 55 tonnes in the second quarter of 2021.

India has 10 Special Economic Zones (SEZ) for gems & jewellery. These zones have more than 500 manufacturing units, which contribute 30% to the country’s total exports. The Revised SEZ Act is also expected to boost gems and jewellery exports.

The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or Government of India. The Government has made hallmarking mandatory for gold jewellery and artefacts and a period of one year is provided for its implementation.

In the Union Budget 2024, the government proposed reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4%. In the Union Budget 2023-24, the government proposed to increase the import duty on silver dore, bars, and articles to 10% to align them with that of gold and platinum. As per the Union Budget 2021, the Gem and Jewellery Export Promotion Council proposed a reduction in import duty on cut and polished diamonds to 2.5%, from the existing 7.5%, to double exports of gems & jewellery to US$ 70 billion by 2025.

Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 8,020.38 crore (US$ 1,322.24 million) between April 2000-September 2024, according to the Department for Promotion of Industry and Internal Trade (DPIIT).