India's gem and jewellery industry has showcased its enduring strength, maintaining largely consistent export figures during the April 2025–January 2026 period. This stability comes despite navigating a complex global trade landscape marked by economic challenges and fluctuating tariff regimes in crucial markets. A newly forged trade agreement with the United States is poised to significantly invigorate the sector, offering renewed competitive advantages and the potential for substantial export growth. This strategic international accord, alongside proactive market diversification efforts and supportive domestic reforms, positions India's gem and jewellery exports for a robust recovery and sustained expansion in the coming fiscal years.

The overall gross exports reached US$ 23.19 billion, experiencing a minor dollar-value contraction of 0.64% but a positive growth of 3.57% in local currency terms when compared to the preceding year. This performance highlights the sector's intrinsic robustness. The outlook for the industry is further brightened by the Union Budget 2026–27, which introduces a suite of measures designed to streamline business operations, enhance financial accessibility, and bolster export competitiveness, laying a strong foundation for future achievements.

Navigating Global Headwinds: Resilience and Strategic Realignments

The Indian gem and jewellery export sector demonstrated significant resilience from April 2025 to January 2026, recording total gross exports of US$23.19 billion. This figure represented a marginal decline of 0.64% in dollar terms but an increase of 3.57% in rupee terms, underscoring the industry's ability to maintain stability despite challenging global economic conditions. A primary factor influencing these figures was a notable contraction in shipments to the United States, which is traditionally India’s largest market for gems and jewellery. This downturn was largely attributed to elevated tariffs and pricing disadvantages, creating a temporary setback in this crucial trade relationship.

In response to these market dynamics, Indian exporters strategically diversified their global reach. This proactive approach led to significant growth in several alternative markets. Exports to the United Arab Emirates saw a robust increase of 23.71%, while Hong Kong experienced an impressive 33.5% surge. Australia and France also recorded strong growth, each surpassing 36%. Furthermore, markets like Belgium, Thailand, and Israel showed double-digit increases, illustrating the industry's adaptability and widening global footprint. This diversification strategy was crucial in mitigating the impact of reduced demand from the US and maintaining overall export stability during a volatile period.

Policy Boost and Market Diversification: Paving the Path for Future Growth

A pivotal development for the Indian gem and jewellery sector is the recently announced trade deal with the United States. This agreement is expected to be a major turning point, as it reinstates tariff access for gems and jewellery at 18% and introduces zero duty on diamonds and coloured gemstones. Industry leaders project that this tariff rollback will inject new life into exports, potentially adding up to US$3 billion in the near term. This renewed price competitiveness is anticipated to help Indian exporters reclaim market share in the US, positioning them favorably against international competitors and stimulating significant trade re-creation.

Complementing these international trade agreements are strategic domestic reforms outlined in the Union Budget 2026–27. These reforms are highly beneficial for the gem and jewellery sector, focusing on enhancing the ease of doing business, streamlining customs procedures, accelerating clearances, and improving access to finance. Specific measures, such as digital appraisals, advance filing of Bills of Entry, concessional sales from Special Economic Zones to Domestic Tariff Areas, and targeted support for Micro, Small, and Medium Enterprises, are designed to reduce operational costs, optimize cash flow, and strengthen overall export competitiveness. Together, these policy initiatives and market diversification efforts are expected to create a solid foundation for sustainable growth, job creation, and the achievement of ambitious export targets, aiming for US$100 billion in exports by 2047.