Gems and Jewellery Sector Needs Value Shift for Global Competitiveness: NITI Aayog

India’s Gems and Jewellery sector remains a key export industry, employing over 5 million workers, a Business Standard report suggests.  

According to the latest Trade Watch Quarterly by NITI Aayog, the sector operates within a global market valued at $378 billion, where India holds a 7.8% share. However, when raw gold is included, its share has declined from 6.1% in 2015 to 2.9% in 2024. 

During April-December 2025, India’s overall merchandise and services trade recorded a 5.3% year-on-year increase, reaching $1.37 trillion, providing the broader trade backdrop. 

Industry Structure and Constraints 

The sector is largely fragmented and dominated by MSMEs, with production concentrated in mid-value segments such as cut and polished diamonds.  

Higher-value categories, including branded jewellery and lightweight designs, remain limited in scale. 

The report identifies constraints linked to finance, infrastructure and limited integration with global trading systems. These factors continue to affect the sector’s ability to move up the value chain. 

Export Diversification and Import Dependence 

Export data shows gradual diversification across both products and geographies. In contrast, imports remain concentrated, particularly in mineral fuels and electronics. This divergence shows dependence on external sourcing and limited domestic capacity in certain areas. 

The report notes that the import structure is influenced by underdeveloped domestic exploration and processing ecosystems, alongside gaps in trading infrastructure. 

External Exposure and Cost Pressures 

The United Arab Emirates (UAE) accounts for about 36.5% of India’s Jewellery exports and functions as a re-export hub to markets in West Asia, Africa and Europe. Developments in West Asia have led to higher fuel and insurance costs, creating indirect pressure on trade. 

The sector relies primarily on-air cargo, which reduces direct exposure to maritime disruptions, though cost sensitivities remain. 

Policy Measures and Industry Direction 

At the release of the report, Suman Bery stated that trade agreements introduce competition that can influence domestic efficiency. The report outlines measures such as promoting design-led manufacturing, strengthening cluster-based research and development, and expanding access to credit for MSMEs. 

It also recommends aligning trade agreements with sector-specific requirements and encouraging branding initiatives, including the use of geographical indication tags. 

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Conclusion 

The report indicates that improvements in value addition, financing access and production structure will be required to support the sector’s export performance over time. 

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