Nine out of every ten diamonds polished in the world pass through one city. Not Antwerp. Not Tel Aviv. Not New York. Surat, Gujarat - a city of six million people on India's western coast where 5,000+ cutting and polishing factories process the rough stones that end up in engagement rings, pendant necklaces, and museum vaults across the globe.

That single fact tells you more about India's position in global gems and jewelry than any market report.

But Surat is just one part of the picture. India's gems and jewelry sector exported $27.72 billion in FY2025–26 - holding near the $28.5 billion figure from FY25 despite a difficult year of US tariff disruptions, geopolitical turbulence in West Asia, and a multi-year correction in lab-grown diamond prices. Gold jewelry remained stable at $11.36 billion. Silver jewelry exploded 52% to $1.47 billion. Australia grew 38% as a destination market. And in February 2026, the US and India announced a framework for zero-duty access on loose natural diamonds and colored gemstones - the deal the industry had been lobbying for across two years of tariff pain.

This guide covers the full picture: what India exports, who buys it, where it comes from, what the policy environment looks like right now, and what exporters and buyers actually need to navigate this market.

India's Gems & Jewelry Export Snapshot - The Numbers That Matter

Category	FY25 Value	FY26 Value	Direction
Total gems & jewelry exports	$28.5 billion	$27.72 billion	−3.3% (dollar terms)
Cut & polished diamonds	~$13.29 billion	~$12.17 billion	Declining (US tariff impact)
Gold jewelry (plain + studded)	$11.22 billion	$11.36 billion	Stable
Studded gold jewelry	~$6.14 billion	$6.52 billion	+6.27%
Silver jewelry	$961 million	$1.47 billion	+52.21%
Platinum jewelry	$182 million	$254 million	+39.32%
Lab-grown diamonds (polished)	$1.27 billion	~$1.14 billion	Declining on price correction

Top 5 export destinations in FY25: USA ($9.93B), UAE ($7.75B), Hong Kong ($4.56B), Belgium ($1.60B), UK ($967M)

FY26 market shift: UAE overtook the USA as India's #1 jewelry market, reaching $8.70 billion (+10.52%). Australia grew 38.33%. The US dropped sharply due to tariff headwinds - though the February 2026 zero-duty framework on loose diamonds is expected to reverse that.

Sources: GJEPC, IBEF, Ministry of Commerce & Industry (PIB India)

The government's target: $75 billion in gems and jewelry exports by 2030, with a long-term goal of $100 billion by 2047. From $27.72 billion today, reaching $75 billion requires roughly 15% annual growth - ambitious, but the FTA-led market diversification underway suggests this is not just aspiration.

1. Diamonds - Surat's Crown and Current Turbulence

Why India Dominates Diamond Processing

India processes over 90% of the world's diamonds by volume. That statistic has been true for decades, and it remains true because of something that is genuinely hard to replicate: generational craft knowledge concentrated in a single city.

Surat's diamond industry did not happen by government plan. It grew organically from the 1960s onward as skilled workers from Saurashtra and Palanpur communities built family businesses into what is now the world's diamond polishing capital. Today, round brilliant cuts - accounting for 65% of Surat's output - leave these factories and travel to the US, UAE, Hong Kong, and Belgium in volumes that no other country can match.

The numbers behind the dominance: India's cut and polished diamond exports peaked at $25.48 billion in FY2021-22 before a painful multi-year correction. By FY25, the figure had fallen to $13.29 billion - a 48% decline from peak levels, driven by rough diamond supply disruptions, slower US consumer demand, and lab-grown price pressure. FY26 saw further decline, with total cut and polished exports dropping roughly 13% April-August 2025 vs the same period the prior year, and direct US exports falling 50%.

This is the honest picture. India still dominates diamond processing globally, but the sector has had a rough few years.

The US Tariff Crisis and Its Resolution

In August 2025, the US imposed an additional 25% tariff on Indian goods, on top of the existing tariffs - pushing the total to 50% on many categories. For the diamond trade, the effect was severe. India's cut and polished diamond exports to the US dropped over 60%, from $3.64 billion (April–December 2024) to $1.45 billion in the same period of 2025.

GJEPC Chairman Kirit Bhansali called it "a deeply concerning development with far-reaching repercussions." He was not wrong. Surat factories idled. Workers went on extended leave. The industry lobbied hard and consistently.

Then, in February 2026, came the break: the US and India announced a framework for an interim trade agreement. Under its terms, loose natural diamonds and colored gemstones will face zero duty. Finished diamond jewelry and lab-grown diamonds will carry 18% tariffs - not ideal, but far better than 50%. The Jewelers of America president specifically credited GJEPC's consistent advocacy as instrumental.

This is not fully resolved - as of early May 2026, the interim agreement framework has been announced but not yet signed into law. But the direction is clear. The diamond trade between India and the US is finding its footing again.

Lab-Grown Diamonds: The Story Inside the Story

By the second half of 2022, an estimated 30% of Surat's factories had added lab-grown diamonds to their operations. Today, it is reported that 99 of the top 100 diamond producers in Surat run a dual model - natural and lab-grown. Some have shifted entirely to lab-grown.

India produces around 3 million lab-grown diamonds per year, accounting for 15% of global production. Between 4,000 and 6,000 reactors operate across Surat, producing upward of 1.5 million carats of rough annually. Lab-grown diamond exports went from $197 million in 2017 to $1.72 billion in 2022 - a genuinely remarkable trajectory.

But there is a catch. Lab-grown diamond prices collapsed. According to GTRI data, prices in India fell 65% within a single year - from ₹60,000 to ₹20,000 per carat. This price erosion hit exporter margins hard. FY25 polished lab-grown exports declined 9.64% by value despite volume growth. FY26 saw a further mild decline of around 8%.

The industry response has been adaptation rather than retreat. Workers are shifting from natural diamond polishing to lab-grown (the skills are identical) without major disruption. Companies like Greenlab in Surat - with over 1,000 reactors and 6,000 workers - are seeing exports nearly double year-on-year because volume growth offsets price compression.

The IIT Madras research grant for lab-grown diamond technology (backed by the Ministry of Commerce and GJEPC) signals where government support is heading: domestic seed and reactor production so India is not dependent on imported technology.

Key certification for diamond exports: Kimberley Process Certificate (KP) for rough diamonds; GIA, IGI, or HRD grading reports for polished diamonds. For lab-grown, IGI and GCAL are the primary certification bodies recognized by US buyers.

2. Gold Jewelry - $11.36 Billion and a Tale of Six Cities

Gold jewelry is India's most stable export category. It held at $11.36 billion in FY26, barely changed from FY25 - which, given everything that happened in the global trade environment, says something about its resilience.

India accounts for roughly 24% of global jewelry market share. The country's 4.5 million skilled goldsmiths - karigars - are the backbone of this. No other country has this workforce scale at comparable skill levels.

But gold jewelry export in India is not one market. It is six distinct manufacturing ecosystems:

Mumbai / SEEPZ (Santacruz Electronics Export Processing Zone) - India's largest export-oriented jewelry manufacturing cluster. Machine-made and designer gold pieces. SEEPZ alone accounts for a disproportionate share of India's fine jewelry export value. High-end international brands source from Mumbai manufacturers.

Surat, Gujarat - The diamond-studded jewelry capital. Surat's expertise in diamond processing extends naturally into diamond-set gold and platinum jewelry. Machine-made pieces at volume and speed.

Jaipur, Rajasthan - Kundan, Meenakari, and colored gemstone-set jewelry. Jaipur's gemstone expertise (the city is also a major colored stone hub) makes it the destination for elaborate stone-set pieces. The Sitapura SEZ here has export-oriented manufacturing units with modern infrastructure.

Chennai, Tamil Nadu - Traditional South Indian gold jewelry. Temple jewelry, long chains, heavy ceremonial pieces. Pricing for volume orders is competitive. Craftsmanship is handmade and regionally distinctive.

Kolkata, West Bengal - Filigree work, intricate handmade gold pieces. Bengali jewelry traditions produce some of India's most technically detailed export product.

Hyderabad, Telangana - Pearl jewelry. Hyderabad's historical connection to natural pearls extends into cultured pearl jewelry manufacturing. Malabar Gold & Diamonds invested ₹1,000 crore in their Hyderabad manufacturing facility in 2024.

The studded gold jewelry segment - pieces with diamonds or colored stones - grew 6.27% in FY26 to $6.52 billion. This is where India competes with Italy and Turkey for premium international buyers. The design quality and craftsmanship at competitive price points is what keeps large US and UAE retailers returning.

BIS Hallmarking - Mandatory since June 2021 for gold jewelry sold in India (and required for exports to many markets). Covers six purity levels: 14K, 18K, 20K, 22K, 23K, and 24K. International buyers - particularly from the UK and GCC - increasingly require BIS hallmarking documentation as part of their sourcing compliance.

3. Silver Jewelry - The Breakout Category

Silver jewelry is the story of FY26. Exports surged 52.21% to $1.47 billion - by far the best performance of any sub-category in India's jewelry export basket.

Three things drove this:

Silver prices surged globally - Silver rose approximately 42% in price in the prior year. This inflated export values even without volume growth.

Consumer shift toward affordable precious jewelry - Silver sits between fashion/imitation jewelry and gold at a price point that appeals to growing middle-class consumer bases in the UAE, UK, and emerging markets. As gold hit record prices, buyers in these markets moved down to silver without abandoning precious metal entirely.

Jaipur's structural advantage - Jaipur is the manufacturing center for Indian silver jewelry, combining artisan silversmithing traditions with modern export infrastructure. The city's gemstone clusters feed naturally into silver jewelry - carved gemstones set in silver are both technically achievable and commercially appealing to international buyers.

The top buyers for Indian silver jewelry in FY26: UAE (where plain gold and silver jewelry surged 46.74% and 17.43% respectively April–September 2025), UK, USA, and Germany.

Silver jewelry from India is also one of the more accessible entry categories for new international buyers. MOQs are lower than gold. Certification requirements are simpler (silver does not require BIS hallmarking for export). And Indian silver jewelry - particularly the Jaipur artisan segment - has a strong narrative for brand positioning in natural beauty and artisan retail markets globally.

4. Colored Gemstones - India's Lesser-Known Export Power

India is one of the world's largest exporters of colored gemstones, and this category gets significantly less attention than diamonds or gold. That is both a market inefficiency and an opportunity for buyers.

Jaipur is the center. The city's gem lapidary trade processes stones from across the world - not just Indian-origin stones - and exports cut, calibrated, and faceted colored gems globally. The range covers:

• Emeralds - sourced rough from Colombia and Zambia, cut and calibrated in Jaipur
• Rubies and sapphires - from Burma, Sri Lanka, Madagascar, and East Africa, processed in Jaipur
• Tourmalines, garnets, spinels - smaller volume but growing demand in the custom jewelry and direct-to-consumer segments
• Aquamarine, amethyst, citrine - high-volume calibrated stones for commercial jewelry manufacturing globally

India also produces some gemstones domestically: Rajasthan garnets, Odisha moonstone, Bihar iolite, and Kashmir sapphires (though Kashmiri sapphire production is now extremely limited).

India's domestic diamond market has grown to represent 11% of global natural diamond jewelry consumption, surpassing China to become the world's second-largest market. That is a relevant data point for colored gemstones too - India's own consumer market for fine gemstones is growing fast, which is building the domestic expertise and infrastructure that supports export quality.

5. Market Destinations - Who Buys and Why

UAE - The New #1

The UAE overtook the USA in FY26 as India's largest gems and jewelry market, reaching $8.70 billion after 22%+ growth through most of the fiscal year (partially moderated by regional tensions in the final months). The India-UAE CEPA (Comprehensive Economic Partnership Agreement), signed in 2022, gives Indian jewelry exporters preferential tariff access - 5% duty for gold jewelry vs. the standard 5% UAE VAT plus tariff that applies to other origins. The Dubai IJEX (India Jewellery Exposition Centre) opened in the UAE to give Indian exporters a permanent physical presence in the market.

The UAE serves two distinct functions: a genuine consumer market (the UAE's own population and the large South Asian expat community buy significant volumes of Indian jewelry) and a re-export hub to the broader Middle East, Africa, and Central Asia.

USA - Disrupted But Not Gone

The US was India's largest jewelry market in FY25 at $9.93 billion. In FY26, it fell sharply as tariffs created 50%+ effective tax rates on many categories. Cut and polished diamond exports to the US dropped over 60% in the worst months.

But the February 2026 zero-duty framework for loose diamonds is the inflection point. US retailers literally cannot source elsewhere - as Jewelers of America told the Trump administration directly, "diamonds and gemstones cannot be sourced in the US and the trade relies on India." When the interim agreement formalizes, the US market is expected to recover relatively quickly because the inventory and demand are there.

Australia - The Fastest Growing

Australia grew 38.33% in FY26, driven almost entirely by the India-Australia CEPA that provides Indian jewelry exporters with duty-free or reduced-duty access. A CRISIL study identified India's unrealized export potential in gems and jewelry at $38 billion - Australia is part of that untapped opportunity.

Hong Kong - The Diamond Hub

Hong Kong functions primarily as a trading and re-export center for Indian diamonds going to China and the broader Asian market. Exports reached $4.56 billion in FY25. Despite China's own diamond demand slowdown (China's luxury consumption has been weaker since 2023), Hong Kong remains the critical routing point for India's diamond trade into Asia.

Belgium - The European Gateway

Belgium at $1.60 billion reflects Antwerp's role as Europe's diamond trading center. Most Indian diamonds that enter Europe transit through Antwerp before distribution to manufacturers and retailers across the EU. Belgian buyers are primarily trading houses rather than end consumers.

UK - Growing With FTA Tailwind

UK at $967 million in FY25 is set to grow significantly. The India-UK FTA (recently signed) is expected to more than double India's gems and jewelry exports to the UK, reaching $2.5 billion within two years — primarily by eliminating the UK's 4% tariff on Indian jewelry that currently disadvantages Indian exporters relative to competitors with existing UK trade agreements.

6. What Competitors Articles Get Wrong

Most existing content on India's gems and jewelry exports is either outdated or surface-level. Three things they consistently miss:

They ignore the US tariff story - which is the most important thing happening right now. If you are an exporter and you have not understood that the India-US interim trade framework (February 2026) is potentially transformational for diamond exports, you are behind. If you are a US jeweler reading about Indian diamonds, you need to know that loose stone tariffs are moving toward zero and the supply chain disruption of 2025 is easing.

They treat lab-grown diamonds as a sideshow. India grows 3 million lab-grown diamonds per year. Surat's top 100 producers are all running dual operations. The IIT Madras research program is building domestic reactor technology. Lab-grown is not a footnote - it is a structural shift in what India's diamond industry produces, and the price correction (painful as it has been) is making Indian lab-grown more competitive globally as prices stabilize.

They skip silver jewelry entirely. A 52% surge in FY26 to $1.47 billion is not a footnote. Silver jewelry is the fastest-growing sub-category in India's jewelry export basket, it has lower barriers to entry for exporters, and Jaipur's artisan silver sector is producing product that international buyers want. The Jaipur story on silver deserves its own article, not a paragraph buried at the end.

7. Government Support - Real Policy, Real Money

GJEPC (Gem & Jewellery Export Promotion Council) Set up by the Ministry of Commerce in 1966. 10,900+ members. Runs the India International Jewellery Show (IIJS, Mumbai), the Signature International Fine Jewellery Show, Virtual Buyer-Seller Meets, and the IJEX centre in Dubai. GJEPC is the institution that negotiated with the Indian and US governments to get diamonds into the February 2026 zero-duty framework. For any exporter in this sector, GJEPC membership is the starting point. → gjepc.org

$75 Billion Target by 2030 The Department of Commerce has formally set a target of $75 billion in gems and jewelry exports by 2030, with a long-term goal of $100 billion by 2047. Policy instruments backing this include the Diamond Imprest Authorization (DIA) Scheme (duty-free imports of small natural diamonds for qualified exporters), reduction of import duty on cut and polished diamonds from 7% to 5%, elimination of the equalization levy on rough diamond sales, and customs duty reduction on jewelry from 25% to 20% (Union Budget 2025-26).

Bharat Ratnam Mega CFC (Common Facility Centre) A socio-economic project promoted by the Ministry of Commerce, GJEPC, and SEEPZ SEZ to create world-class manufacturing infrastructure for MSMEs and small businesses in the sector. Provides access to shared technology, testing, and design infrastructure.

Special Economic Zones (SEZs) Jewelry SEZs in Surat, Mumbai (SEEPZ), Jaipur (Sitapura), and Cochin offer duty-free raw material imports, simplified export procedures, and tax incentives for export-oriented manufacturing units.

IIT Madras Lab-Grown Diamond Research Grant Ministry of Commerce and GJEPC-funded research to develop indigenous CVD reactor technology, reducing India's dependence on imported seeds and machinery. Objective is to make India's lab-grown diamond production domestically self-sufficient.

India-GCC FTA Negotiations (February 2026) India and the Gulf Cooperation Council formally launched negotiations for a comprehensive FTA in February 2026. If concluded, this would extend UAE CEPA-type benefits to the entire GCC - Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman. Significant upside for Indian gold and diamond jewelry exports.

BIS Mandatory Hallmarking Effective June 2021 for the domestic market; international buyers increasingly require BIS certification for imported gold jewelry. Exporters without BIS-certified assayers in their supply chain face friction with premium international buyers.

8. What You Actually Need to Export Gems & Jewelry from India

This is the section most guides skip or make vague. Here is the practical breakdown:

For all exporters:

• IEC (Import Export Code) from DGFT - without this, nothing ships
• GJEPC RCMC (Registration Cum Membership Certificate) - mandatory for gems and jewelry exporters; this is your industry body registration
• GST registration and compliance

For gold jewelry exports:

• BIS hallmarking certificate for the gold purity levels you are exporting
• Certificate of Origin (CO) for FTA benefit claims (issued by GJEPC)
• Invoice with declared metal purity and making charges separated

For diamond exports (natural):

• Kimberley Process Certificate (KPC) for rough diamonds
• GIA / IGI / HRD grading report for polished diamonds - most buyers require this
• For small melee diamonds (<0.25 ct): DIA Scheme registration allows duty-free imports for processing and re-export

For lab-grown diamond exports:

• IGI or GCAL certification - US and EU buyers require disclosure that stones are lab-grown; FTC regulations mandate this for US market
• Must be clearly disclosed on all invoices and grading documentation

For colored gemstone exports:

• HS code accuracy is critical - different stones have different codes under Chapter 71
• Country of origin documentation if claiming FTA benefits
• For corundum (ruby, sapphire): GRS, AGL, or Gübelin lab reports preferred by premium buyers

For the US market specifically:

• FTC Jewelry Guides compliance - metal content labeling, gemstone disclosure, lab-grown disclosure
• Harmonized Tariff Schedule (HTS) code accuracy - currently especially important given the evolving tariff situation
• For finished jewelry: under the February 2026 framework, 18% tariff on finished diamond jewelry; zero tariff on loose natural diamonds and colored gemstones (pending interim agreement formalization)

For the EU market:

• REACH regulation compliance for metal alloys used in jewelry
• CE marking not required for jewelry, but nickel release standards apply under EN 1811
• Country of origin labeling in the language of the destination country

For the UK post-Brexit:

• Separate UK hallmarking is recognized; Indian BIS hallmarks are not automatically recognized - UK buyers may require independent assay at time of import
• CPSR (not required for jewelry specifically, but relevant if jewelry has cosmetic application claims)

For the UAE:

• Under India-UAE CEPA, claim Form I (Certificate of Origin from GJEPC) to get preferential 5% tariff rate
• Dubai Multi Commodities Centre (DMCC) has specific documentation requirements for gold and diamond imports

9. Finding Buyers as an Indian Jewelry Exporter

Trade shows:

• IIJS (India International Jewellery Show) - Mumbai, August annually. India's largest jewelry trade show; draws buyers from 100+ countries.
• Signature International Fine Jewellery Show - January, Mumbai. Premium segment; for established exporters with fine jewelry product.
• Baselworld / Watches & Wonders (Geneva) - For exporters in the luxury segment.
• JCK Las Vegas - June annually. US market entry show; exhibiting here puts Indian suppliers directly in front of US retail buyers.
• Hong Kong International Jewellery Show - March annually. The gateway to Asian buyers.

B2B platforms: Navi Exports connects verified Indian gems and jewelry exporters with international importers. Browse the Gems & Jewelry category to find exporters with documented credentials across diamond, gold, silver, and colored stone categories.

GJEPC Virtual Buyer-Seller Meets: GJEPC runs targeted virtual B2B meetings with buyers in specific countries. These are underused by smaller exporters and worth attending - the buyers in the room are specifically there for Indian product.

E-commerce: Amazon Global Selling, Etsy, and Faire are active channels for artisan and fashion jewelry segments. The artisan jewelry segment — Jaipur Kundan and Meenakari, Odisha filigree, Bengal metalwork - travels well through direct-to-consumer online channels without requiring large B2B order quantities.

Related Navi Exports Categories

• Gems & Jewelry Exporters
• Fashion Accessories
• Gifts, Crafts & Home Decor
• Apparel & Accessories
• Textile Products & Fabric

The Bottom Line

India's gems and jewelry export sector is not a growth story right now - it is a resilience story. FY26 saw the sharpest tariff disruption the diamond trade has faced in a generation, geopolitical tension in one of its biggest markets (the Middle East), and a multi-year lab-grown diamond price correction. And yet the sector held near $28 billion.

The reasons are structural. Nine out of ten diamonds polished globally pass through Surat because no other city has developed this expertise at this scale. Gold jewelry from India wins orders in the UAE and UK because 4.5 million Indian goldsmiths produce quality that competing countries cannot replicate at comparable cost. Silver jewelry from Jaipur is growing at 52% because the artisan base and gemstone integration make it genuinely different from Chinese and Thai alternatives.

The February 2026 US zero-duty framework for loose diamonds is the turning point the sector needed. When it formalizes, the world's largest jewelry market reopens at better terms than before the tariff crisis began. The India-UK FTA is expected to double UK exports within two years. GCC FTA negotiations started in February 2026.

The sector is at the start of what looks like a recovery cycle, with better market access than it has had in years.

If you are a buyer who has not looked at Indian gems and jewelry sourcing seriously, the window to build relationships before demand normalizes is now. If you are an Indian exporter who has not registered with GJEPC or listed on verified B2B platforms, that is the first practical step.

→ Browse verified Indian gems & jewelry exporters on Navi Exports