India’s $85 billion gems & jewellery sector gets policy fillip, closes in on Dubai, Hong Kong

Mon Apr 27 2026

The government recently widened the ambit of the SEZ Rules, 2006, to include jewellery in Free Trade Warehousing Zones (FTWZ), according to a release by the industry body, the Gem and Jewellery Export Promotion Council (GJEPC). The move is expected to create more opportunities for the jewellery sector and elevate India’s stature as a reliable global trading hub.

Under a circular dated March 3, 2016, FTWZ units were authorised to undertake the storage and vaulting of precious commodities, such as gold, silver, platinum, gems, and precious stones. “The latest clarification now explicitly includes jewellery within this framework, effectively completing the value chain within the SEZ-linked FTWZ ecosystem,” GJEPC said.

The inclusion of jewellery under the FTWZ framework addresses a critical need of the industry in the current global environment, said Kirat Bhansali, Chairman of GJEPC. “It enables secure storage and efficient movement of high-value inventory while strengthening India’s position as a reliable and competitive trading destination for the global gems and jewellery community.”

Industry players have welcomed the announcement. Surat-based Jayanti Savaliya, Regional Chairman of GJEPC, said this will be a great opportunity for the city’s diamond industry, which is known the world over. “It will be a game changer for India. It will optimise logistics, ease compliance, and support export growth,” he said.

Echoing similar views, Prapanjj S.K. Kota, Founder, Reia Diamonds, said the move would streamline operations in the domestic market, especially for manufacturers and retailers reliant on imported materials like lab-grown diamonds. “It can lower costs and make the overall supply chain more efficient. On the global front, this step makes India more competitive as a jewellery hub, bringing us closer to markets like Dubai and Hong Kong,” he said.

Kota also believes that the move will brighten prospects for the future, with more global players expected to engage with India. “There will be faster movement of goods and better pricing transparency. For brands like ours in the lab-grown diamond space, it also opens up opportunities to scale and expand exports. Overall, this is a step towards making the jewellery industry more modern, efficient, and globally connected,” he elucidated.

India’s gems and jewellery market, valued at Rs 7,31,255 crore ($85 billion) in January 2025, is expected to reach Rs 11,18,390 crore ($130 billion) by 2030, according to data from IBEF. This highlights the tremendous potential of the sector.

According to GJEPC, this move addresses a critical gap in the existing framework by enabling finished jewellery to be stored, displayed, and traded within FTWZs, something that was not clearly permitted earlier. “It also provides a secure mechanism for handling

high-value inventory, which is particularly important during periods of global uncertainty. At the same time, it supports trade continuity by facilitating smoother consignment-based operations and more efficient global redistribution from India,” it stated.

Talking about how this has been a very practical and long-overdue move for the industry, Prerna Khurana, Director at Amritsar-based Khurana Jewellery House, said that it brings in much more flexibility in how inventory is managed, especially for fine jewellery,

 where timing and liquidity are critical. “Domestically, we see this improving the ease of doing business quite significantly. It should encourage more organised players to scale, and [it will] make the ecosystem more structured and transparent. From a global

standpoint, this is where the real opportunity lies. If implemented well, India has the potential to position itself not just as a manufacturing hub but also as a trading and distribution centre for jewellery,” she said.

To create more awareness, GJEPC is apprising its members of the latest announcements for the sector. Alluding to how FTWZs in India offer a viable and well-regulated environment backed by SEZ infrastructure, the release noted that this helps offer both stability and operational efficiency. “The move positions India as an additional, dependable hub within the global supply chain, offering flexibility to international traders while reinforcing confidence in India’s regulatory and trading ecosystem,” it added.

Source: https://m.economictimes.com