Gems and Jewellery Industry Analysis

India’s gems & jewellery exports are expected to reach US$ 100 billion by 2027.

Advantage India

Growing
Demand

* Gold ETF AUM rose from 40 tonnes to 54 tonnes in 2024, signaling increasing retail investor participation.

* Investment demand grew 14% YoY, reaching 76 tonnes in Q4 CY24, even as jewellery demand softened.

* In October 2020, the first edition of IIJS Virtual* recorded >10,000 visitors and a business turnover of ~ Rs. 1,000 crore (US$ 137.31 million).

* In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds.

Growing Demand

Increasing
Investments

* RBI’s gold purchases surged from 16 tonnes in 2023 to 73 tonnes in 2024, reinforcing confidence in gold reserves.

* Lighthouse, a private equity platform, has made a significant investment of Rs. 284 crore (US$ 34.2 million) in Kushal's, a brand specializing in fashion and silver jewelry.

* In September 2023, Malabar Gold & Diamonds announced to invest Rs. 1,000 crore (US$ 120.4 million) by FY25, the company announced generating 4,000 jobs in Maharashtra.​

* 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). ​

Increasing Investments

Policy
Support

* The Government has permitted 100% FDI under the automatic route** in this sector.

* The sector now has AEO status from the finance ministry, easing export-import processes with quicker cargo release, 50% lower bank guarantees.​

* The Government has reduced custom duty on cut and polished diamond and coloured gemstones from 7.5% to 5% and NIL. ​

* 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. ​

* India has signed an FTA with UAE which will further boost exports and is expected to reach the target of US$ 52 billion.​

* India has signed Economic Cooperation and Trade Agreement (ECTA) with Australia.​

Policy Support

Attractive
Opportunities

* India’s gold demand in 2025 is projected to remain robust, ranging between 700-800 tonnes despite a 31 per cent increase value-wise in 2024 - World Gold Council.

* India’s gold demand witness a 774.1 tonnes in 2023.​

* The gems and jewellery sector represents 0.19% of the total equity inflow for FDI from April 2000 to December 2024.

Attractive Opportunities
Last updated: Apr, 2025

Major Hubs for Gems and Jewellery

  • Surat
  • Mumbai
  • Jaipur
  • Thrichor
  • Nellore
  • Delhi
  • Hyderabad
  • Kolkata

Posters

MORE
CHASING THE SPARKLE

CHASING THE SPARKLE

India is the world's largest consumer of diamonds.

IBEF Campaigns

MORE
Discover India 2024

Discover India 2024

APEDA is organizing participation in SIAL Paris 2024 scheduled to be held f...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Case Studies

MORE

Shaping the Future: How PM Ujjwala Yojana is Addressing India’s Energy Needs

Shaping the Future: How PM Ujjwala Yojana is Addressing India’s Energy Needs

India, with its large population and diverse socio-economic conditions, has long struggled to ensure clean and affordable energy access for all, espec...

India's Electronics Sector: Pathway to Global Value Chain Integration

India's Electronics Sector: Pathway to Global Value Chain Integration

Electronics manufacturing plays an essential role in the global supply chain, fuelling everything from electric cars on the road to smartphones in our...

Affordable Luxury: Understanding Premiumisation and Evolving Consumer Preferences

Affordable Luxury: Understanding Premiumisation and Evolving Consumer Preferences

The concept of "Affordable Luxury" is critical in the Indian context. Unlike traditional luxury, which caters to an elite niche, affordable ...

IBEF BLOG

MORE
Changing India's Industrial Environment: An Overview of the National Industrial Corridor Development Programme (NICDP)
22 Apr 2025

Changing India's Industrial Environment: An Overview of the National Industrial Corridor Development Programme (NICDP)

The National Industrial Corridor Development Programme (NICDP) in India has...

Bharatiya Antriksh Station by 2035: India’s Ambitious Leap into Space Innovation
21 Apr 2025

Bharatiya Antriksh Station by 2035: India’s Ambitious Leap into Space Innovation

India’s journey in space exploration has been remarkable, highlightin...

Unlocking the future of Aesthetic Medicine in India
10 Apr 2025

Unlocking the future of Aesthetic Medicine in India

Aesthetic medicine is a division of modern medical practice, devoted to enh...

Partners
Loading...