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
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