Advantage India
Growing
Demand
* On October 31, 2025, India’s gold exchange-traded funds (ETFs) surpassed Rs. 1,00,000 crore (US$ 11.80 billion) in Assets Under Management (AUM) with net inflows of over Rs. 27,500 crore (US$ 3.05 billion) and a surge in investor participation, reflecting widening investor interest and diversification.
* Total gold holding reached 77.3 tonnes till September 2025, with 7.3 tonnes added in the same month.
Increasing
Investments
* RBI’s gold purchases reached 57.5 tonnes in FY25 and was the second highest purchase in seven years from December 2017.
* Malabar Gold & Diamonds has opened its largest jewellery manufacturing facility in Hyderabad with an investment of Rs. 1,000 crore (US$ 116 million).
* Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 13,273 crore (US$ 1.47 billion) between April 2000-June 2025.
Policy
Support
* The Government has permitted 100% FDI under the automatic route in this sector.
* 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.
* The India-UK Free Trade Agreement is expected to more than double India's gems and jewellery exports to the UK, reaching Rs. 21,183 crore (US$ 2.5 billion) within the next two years.
Attractive
Opportunities
*India’s gold demand stood at 135 tonnes in Q2 2025 with full year forecast ranging between 600 to 700 tonnes, displaying opportunities for the sector to tap into the growing demand.
Introduction
India’s gold and diamond trade contributes about 7% to the country’s Gross Domestic Product (GDP), with the Gems & Jewellery sector employing nearly five million people. Recognising its immense potential for growth and value addition, the Government has identified the sector as a focus area for export promotion. To strengthen ‘Brand India’ in the global market, several initiatives have been introduced, including measures to promote investment, upgrade technology, and enhance skills. The Government has also permitted 100% FDI in the sector under the automatic route, allowing foreign investors and Indian companies to invest without prior approvals. Further, the India-United Kingdom (UK) Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, has eliminated import duties of 2.5-4% on plain gold and diamond jewellery, giving Indian exporters a competitive edge and expected to more than double India’s Gems & Jewellery exports to the UK to Rs. 21,183 crore (US$ 2.5 billion) by 2027.
Market Size
India’s Gems & Jewellery market size stood at Rs. 7,31,255 crore (US$ 85 billion) in January 2025 and is projected to expand to Rs. 11,18,390 crore (US$ 130 billion) by 2030. During FY26 (April-November 2025), India's gems and jewellery exports stood at Rs. 1,70,287 crore (US$ 18.86 billion). The latest growth momentum is being driven by increasing global demand for gold jewellery and cut & polished diamonds, supported by favourable trade agreements and rising consumer spending in key markets such as the US, UK, and the Middle East.
Investments/Developments
Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 13,273 crore (US$ 1.47 billion) between April 2000-June 2025.
Some of the key developments in this industry are listed below:
- Sabyasachi Calcutta launched its first digital fine jewellery boutique on Tata CLiQ Luxury on August 21, 2025, showcasing 18 carat gold pieces with diamonds, pearls and gemstones to expand its luxury reach.
- GemLab inaugurated its Exclusive Certified Gemstone Store in Rohtak on 20 July 2025, offering individually certified gems, each with an 8-digit GIN and trackable via the Gem Track System and plans to expand to the US, Canada, UK and Europe within two years.
- India and Thailand signed three key Memorandum of Understanding (MoUs) at the Bangkok Gem and Jewellery Fair on February 22, 2025, fostering collaboration in gemstone standardisation, coloured gemstone trade and silver jewellery to deepen bilateral cooperation.
- United States (US) based fine-jewellery brand Angara entered the Indian market in September 2024 with a digital-first, direct-to-consumer model offering customizable, made-to-order gemstone pieces.
- In June 2024, Union Minister of Commerce and Industry Mr. Piyush Goyal commends Bharat Ratnam - Mega CFC, a project by the Gem & Jewellery Export Promotion Council (GJEPC) and SEEPZ, for enhancing the Aatmanirbhar Bharat vision.
- In January 2024, Prime Minister Mr. Narendra Modi inaugurated the commencement of the Bharat Ratnam Mega CFC at the SEEPZ SEZ in Mumbai in virtual mode (remotely). Bharat Ratnam Mega CFC is a Socio-economic project promoted by the Ministry of Commerce and Industry, GJEPC India and SEEPZ SEZ authority to drive exports from the country. This project aims at creating a world-class infrastructure for promoting the inherent skills of the Gems & Jewellery manufacturing industry. The Mega Common Facilitation Centre provides a supportive and collaborative environment for entrepreneurs, MSMEs and small businesses to grow and thrive.
Government Initiatives
- In September 2025, the Government kept the Goods and Services Tax (GST) rate for the jewellery sector unchanged at 3%, and industry noted that broader GST reforms and cuts in other rates would indirectly support demand for gems and jewellery.
- Under Union Budget 2025-26, the customs tariff on jewellery (HSN code 7113) was reduced from 25% to 20% and on platinum findings from 25% to 5%, making jewellery more affordable and boosting domestic demand.
- In the Union Budget 2024, the government proposed reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4%.
- The sector now has AEO status from the finance ministry, easing export-import processes with quicker cargo release, 50% lower bank guarantees.
- The Indian government accepted the recommendation of GJEPC to promote indigenous manufacturing in the emerging Lab-grown diamond sector by providing research grants to the Indian Institute of Technology (IIT) for five years.
- India has signed an FTA with the UAE which will further boost exports and is expected to reach the target of US$ 52 billion.
- The Government has reduced custom duty on cut and polished diamond and coloured gemstones from 7.5% to 5% and NIL.
- Revised SEZ Act is also expected to boost Gems & Jewellery exports.
Road Ahead
The future of India’s Gems & Jewellery sector will be shaped by the growing dominance of large retailers and established brands, which are steadily expanding their presence across the country. Organised players are not only introducing greater variety in terms of designs and product lines but are also driving higher levels of professionalism, transparency, and consumer trust in the market.
Policy support remains a key growth catalyst. The government’s liberal measures such as easing restrictions on gold imports, reintroducing low-cost gold metal loans, and promoting exports through favourable trade agreements, are providing a strong foundation for sustained expansion.
India is already recognised as a global hub for jewellery manufacturing, supported by ~450 organised manufacturers, importers, and exporters. These players, backed by increasing government support and rising global demand, are well-positioned to cater to both domestic and international markets. With these positive developments, India’s Gems & Jewellery industry is projected to grow to Rs. 11,18,390 crore (US$ 130 billion) by 2030, reaffirming its pivotal role in the country’s exports and retail ecosystem.
References: Media Reports, Press Releases, Reserve Bank of India, Gem & Jewellery Export Promotion Council, DPIIT
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