Conflict in West Asia disrupts gems and jewellery trade; Surat exporters raise concerns

Tue Mar 03 2026

The ongoing conflict in West Asia following the joint military action by the US and Israel against Iran is expected to significantly impact India’s gems and jewellery sector, particularly exports and imports to Israel and Dubai, industry stakeholders said. Speaking to ANI, diamond trader Dinesh Navadiya said the escalating tensions and disruption in international flight operations could adversely affect trade flows, especially high-value diamond exports.

“If we analyse the statistics, from April 2024 to March 2025, our exports to Israel stood at $548.27 million. After tariff-related issues were resolved, exports between March 2025 and February 2026 were $514.20 million. Our business with Israel was growing,” Navadiya said.

He further stated that imports from Israel in 2024-25 were valued at $259.17 million, while exports between February 2025 and February 2026 stood at $337.07 million, reflecting steady growth, particularly in high-value and solitaire diamonds.

“Israel is a major market for raw materials and high-cost diamonds. Due to the war, tension in the industry will increase. International flight delays, airport closures in Israel and many countries are closed too, due to which problems can arise here,” he added. Highlighting the importance of Dubai as a global trading hub, Navadiya said exports to Dubai in 2024-25 were valued at $7,868.16 million, while imports during the same period stood at $11,000.51 million. “Dubai is the world’s largest trading market for raw materials. We import raw materials from there. Due to the war, export and import activities will face difficulties. If the conflict continues for a long time, the gems and jewellery sector will face a major impact,” he said.

Navadiya noted that Surat and Mumbai together export around 400 to 500 parcels daily and import approximately 250-300 parcels via Dubai. However, flight cancellations and airport shutdowns in Israel and other countries have disrupted the whole industry. “Due to flight cancellations and the ongoing tense situation, everything has come to a halt,” he said.

Surat, often referred to as the Diamond City of India, plays a pivotal role in the global diamond supply chain. According to official data, the city achieved exports worth $10.55 billion in FY 2024-25, with the gems and jewellery sector accounting for nearly 70 per cent of total outbound trade. The US, Hong Kong, and the UAE remain key export destinations, while Israel and Belgium are also significant partners. The sector’s strong global integration makes it vulnerable to geopolitical disruptions, industry representatives said. They added that prolonged instability in West Asia could affect supply chains, raw material availability, and export commitments.

Stakeholders have called for close monitoring of the situation, as the industry braces for potential volatility in international trade flows.

Source: https://www.thehindubusinessline.com/