India’s gems and jewellery export sector—which is one of the largest in the world—contributed ~27% to global jewellery consumption in 2019. 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 will witness a sharp upswing to top 800 tonnes in 2023.

From April-March 2023, India's gems and jewellery exports were at US$ 37.95 billion. In FY23, cut and polished diamonds accounted for the highest share of exports (58.83%), followed by gold jewellery (25.14%) and silver jewellery (7.82%).

From April- March 2023, the exports of gold jewellery stood at US$ 9.42 billion.

In December 2022, India imported gems & jewellery worth US$ 3.37 billion. According to the Gem and Jewellery Export Promotion Council, gold bar imports stood at US$ 1,849 million and Gold jewellery stood at US$ 216 million between April-December 2022.

Growth in exports is mainly due to revived import demand in the export market of the US and 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 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 US$ 1,213.06 million between April 2000-March 2022, according to the Department for Promotion of Industry and Internal Trade (DPIIT).