Growth of Gems and Jewellery Industry in India - Infographic

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

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