India’s Trade Watch Highlights Gems and Jewellery Sector Growth
On April 20, 2026, in New Delhi, Shri Suman Bery, Vice-Chairman of NITI Aayog, unveiled the latest edition of the “Trade Watch Quarterly” publication for the third quarter of FY26, covering the period from October to December 2025. This edition was launched in the esteemed company of NITI Aayog Member Shri Arvind Virmani and other senior officials. The publication provides a thorough analysis of both global and domestic trade trends, showcasing the resilience of global trade amidst ongoing macroeconomic and geopolitical challenges.
Focus on India’s Gems and Jewellery Sector
This quarter’s thematic focus centers on India’s vibrant gems and jewellery sector, delving into global demand trends, the nation’s export profile, and the rise of segments like lab-grown diamonds. The analysis offers insights into India’s positioning within global value chains and identifies critical structural challenges along with evolving demand patterns. The report emphasizes policy recommendations necessary to bolster competitiveness and enhance export performance in this sector.
Trade Performance Overview
In the third quarter of FY2025-26, India’s trade performance exhibited a mixed but resilient trend. Merchandise exports saw a modest increase of 1.6%, while imports surged by 7.9%. Conversely, services exports faced robust growth, ascending 7.8%, with a corresponding moderate rise in services imports. This dynamic resulted in a sustained surplus, anchoring the overall external balance.
Gems and Jewellery: A Pillar of India’s Trade
The gems and jewellery segment forms a keystone of India’s labour-intensive manufacturing ecosystem and significantly contributes to the country’s trade landscape. Excluding raw gold, the global market is projected to be worth around $378 billion in 2024, with Indian exports valued at $29.5 billion, thereby claiming a 7.8% share in global exports.
India’s strengths lie primarily in the diamond and precious metal jewellery sectors, which together comprise over half of the global demand—approximately $207.3 billion. India has established a significant presence within these segments, exporting $26.7 billion, and has emerged as a global processing hub driven largely by value addition to imported raw materials. Surat has gained recognition as the world’s largest diamond cutting and polishing center.
Addressing Structural Challenges
Despite the opportunities present, the sector confronts several structural challenges. Key issues include limited value addition due to a fragmented MSME ecosystem, a heavy reliance on imported raw materials, a credit gap stemming from lack of trust within financial institutions, skill and design shortcomings, and limited integration into global trading networks. To tackle these challenges, a strategic push towards enhancing value addition, exploring emerging segments, improving access to finance and materials, fostering technological advancements, and developing a globally competitive ecosystem through supportive policies is essential.
Expert Insights and Future Directions
During the launch, Shri Suman Bery remarked that as global trade undergoes significant changes, India’s capacity to diversify its export base while reinforcing domestic capabilities in vital sectors will be crucial for sustained growth and resilience. He stressed that in sectors like gems and jewellery, adapting to the evolving global demand, intensifying value addition, and addressing structural issues are paramount for competitive maintenance.
Dr. Arvind Virmani, a member of NITI Aayog, applauded the report’s analytical rigor and stressed that enhancing integration into global value chains, along with targeted sectoral interventions, will be vital for sustaining India’s export momentum and generating high-quality employment opportunities.
This edition of “Trade Watch Quarterly” serves as an invaluable resource for policymakers, industry professionals, researchers, and academia, offering data-backed insights and progressive policy suggestions aimed at bolstering India’s trade competitiveness in an ever-evolving global environment.
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