Gems, jewellery exports dip 4.98% in December to $1,883.85 million: GJEPC

India's gem and jewellery sector, a shining facet of its economy, has historically held a prominent position on the global stage, dating back to ancient times when India was renowned as the 'Golden Bird' and a major source of diamonds. Today, it remains a critical pillar, contributing significantly to the nation's GDP, employment, and foreign exchange earnings. The recent report by the Gem & Jewellery Export Promotion Council (GJEPC) indicating a 4.98% dip in exports to $1,883.85 million in December 2025, while seemingly a setback, offers a nuanced look into the industry's dynamics and its resilience amidst global challenges.

The dip in December 2025 was primarily driven by a slowdown in the export of cut and polished diamonds. This segment often faces volatility due to global economic sentiments, luxury spending trends, and inventory adjustments in major consuming markets. Geopolitical issues, as highlighted, significantly impact demand in key international markets, leading to cautious consumer spending and disrupted supply chains. However, this decline was substantially cushioned by the robust growth in gold and silver jewellery exports. This diversification within the sector underscores its inherent strength and ability to adapt, shifting focus to segments experiencing higher demand.

Key stakeholders in this intricate ecosystem include the **GJEPC**, which acts as the apex body for promoting exports and providing crucial market insights. The **Ministry of Commerce & Industry, Government of India**, plays a pivotal role in formulating the Foreign Trade Policy (FTP), negotiating Free Trade Agreements (FTAs), and implementing various export promotion schemes. Manufacturers and exporters, ranging from large corporations to numerous Micro, Small, and Medium Enterprises (MSMEs), are the operational backbone, while millions of skilled artisans and craftsmen form the human capital, especially in hubs like Surat (diamonds), Mumbai (trading), and Jaipur (coloured gemstones and traditional jewellery). International buyers and global retail chains are the ultimate consumers, driving demand and market trends.

This sector holds immense significance for India. Economically, it is one of the largest foreign exchange earners, crucial for maintaining a healthy balance of trade. It employs over 5 million people, particularly in semi-urban and rural areas, providing livelihoods and fostering skill development. The industry's emphasis on value addition, from raw materials to finished products, aligns perfectly with the 'Make in India' initiative, boosting domestic manufacturing and enhancing India's global competitiveness. Furthermore, India's pre-eminence as the world's largest cutting and polishing centre for diamonds is a matter of national pride and strategic importance.

The regulatory framework governing this sector is primarily rooted in the **Foreign Trade (Development and Regulation) Act, 1992**, which empowers the government to make provisions for the development and regulation of foreign trade. The **Foreign Trade Policy (FTP)**, updated periodically by the Ministry of Commerce & Industry, outlines specific incentives and procedural guidelines for exporters, including schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP) which aims to refund embedded taxes and duties. The positive impact of Free Trade Agreements (FTAs), such as the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA), cannot be overstated. These agreements reduce tariffs, eliminate non-tariff barriers, and provide preferential market access, thereby boosting exports to these crucial markets and demonstrating how strategic trade diplomacy can mitigate global economic headwinds.

Looking ahead, the future implications for the Indian gem and jewellery sector are multi-faceted. There will be a continued push for diversification, not just within traditional jewellery but also into emerging segments like lab-grown diamonds, which offer new avenues for growth. Technology adoption, from advanced manufacturing techniques to e-commerce platforms, will be crucial for efficiency and market reach. Skill development and design innovation will remain paramount to cater to evolving global tastes. India will likely continue to pursue more FTAs to secure market access and explore new geographies. The growing global emphasis on sustainability, ethical sourcing, and transparent supply chains will also necessitate industry-wide adoption of best practices, ensuring the long-term viability and reputation of Indian gems and jewellery on the world stage. This resilience and strategic adaptation will be key to maintaining India's gleaming position in the global market.