Advantage India
Growing
Demand
*In April 2026, inflows into Gold ETFs increased by 34% month-on-month to Rs. 3,040 crore (US$ 343.98 million) from Rs. 2,265 crore (US$ 256.29 million) in March, reflecting continued investor preference for gold-backed investment products. During the same period, Silver ETFs recorded net outflows of Rs. 126 crore (US$ 14.26 million), marking the third consecutive month of outflows.
*According to the World Gold Council, the AUM of Indian gold ETFs increased from US$ 7.2 billion in April 2025 to US$ 18.4 billion in May 2026, while physical gold holdings rose from 65.3 tonnes to 116.7 tonnes, indicating strong growth in investor demand for gold-backed ETFs.
Increasing
Investments
*Zeropearl VC led a US$ 0.65 million (Rs. 5.5 crore) pre-seed round in ONYA (Dec 2025 period), funding offline retail expansion and growth in India’s fast-growing lab-grown diamond jewellery segment.
*BlueStone invested US$ 2.83 million (Rs. 25 crore) in lab-grown diamond brand Ethera in Feb 2026, supporting store expansion, omnichannel growth, and scaling India’s emerging lab-grown jewellery segment.
*Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 9,962.78 crore (US$ 1.55 billion) between April 2000-March 2026.
Policy
Support
*India allows 100% FDI under the automatic route in the gems and jewellery sector, including gold and diamond processing and trading, subject to applicable regulatory conditions.
*In May 2026, India and the UAE reaffirmed their commitment to strengthen their economic partnership and expand bilateral trade to US$ 200 billion by 2032 under the India-UAE CEPA, with gems and jewellery remaining one of the key sectors driving bilateral trade.
*Australia will eliminate tariffs on 100% of Indian exports from January 1, 2026, significantly boosting sectors like gems and jewellery under ECTA.
Attractive
Opportunities
*India’s gold demand is projected to remain in the range of 600–700 tonnes in 2026, with rising investment demand offsetting weaker jewellery consumption due to elevated gold prices.
Related News
MOREMajor Hubs for Gems and Jewellery
- Surat
- Mumbai
- Jaipur
- Thrichor
- Nellore
- Delhi
- Hyderabad
- Kolkata
IBEF Campaigns
MORE
Aatmanirbhar Bharat Utsav 2024
Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...
Case Studies
MOREThe Rise of Contract Manufacturing in India's Electronics Sector
India's rise to become a large center for electronics manufacturing services is one of the most significant manufacturing changes in India's r...
Emergence of Battery Swapping Stations and Battery Swapping Electric Vehicles in India
Battery swapping has emerged as a notable addition to conventional electric vehicle (EV) charging for electric two and three-wheelers that require hig...
Smart Metering Deployment in India Policy Framework, Institutional Structure and National Implementation Status
smart metering deployment in India, smart meter policy India, smart metering implementation India, smart meter rollout, institutional framework for sm...
IBEF BLOG
MORE
MSME Digitisation: Unlocking Productivity and Market Access
The Micro, Small and Medium Enterprises (MSMEs) make an important constitue...
Role of SEZs in Promoting Export-Led Growth
Special Economic Zones (SEZs) are a key policy measure in India designed to...
Smart Warehousing in India: Role of Automation and IoT in Supply Chains
Warehouses have been seen as a critical element of the contemporary logisti...
Partners
