Niti pitches for reforms to boost jewellery exports

Tue Apr 21 2026

Given India’s long-standing strength in diamonds and gold jewellery gives it a natural edge, a Niti Aayog report has urged value addition, design-led manufacturing, cluster use, branding, consignment exports in free trade agreements (FTAs), finance access and interest support to make India a global hub.

Globally, the gems and jewellery market (excluding raw gold) stood at about $378 billion in 2024. India’s exports, at $29.5 billion, account for 7.8% of this market. A bulk of this comes from precious metal jewellery and unmounted diamonds, where India has built strong capabilities over decades. Together, these segments dominate global demand and form the backbone of India’s export basket. However, beyond these categories, India’s presence drops sharply, pointing to a narrow export base and overdependence on a few product lines.

Domestically, the sector plays a significant economic role, contributing around 2.2% to manufacturing output and roughly 7% to GDP, while employing nearly five million people. At the same time, it is heavily import-dependent, particularly for gold, which continues to dominate inbound shipments. On the export side, markets are concentrated, with the US, the UAE, and Hong Kong accounting for a large share, leaving the sector exposed to external shocks.

Limited access to affordable credit, patchy data on value addition and employment, and relatively weak capabilities in designing low-carat and contemporary jewellery have held back diversification, Niti Aayog said in its latest Trade Watch report. “With global demand shifting towards design-led, lightweight, and high-value segments, aligning the sector with evolving market trends, improving cost competitiveness, and strengthening institutional support will be critical for India to enhance its global market share and move up the value chain,” it said. The global market is evolving as traditional segments have either stagnated or seen declining shares over the past decade, while areas such as platinum, silver, and recycled precious metals are expanding. “Interestingly, the leading exporters globally, such as Switzerland and Hong Kong, do not necessarily possess the raw materials required in the sector but have conducive policies related to financial trading, refining capabilities, and market access that have worked favourably over the years in strengthening their positions,” the think tank said.

The report called for a sharper focus on value addition and design-led manufacturing. It recommends better utilisation of specialised clusters, targeted branding — including promotion of GI-tagged products — and the inclusion of consignment exports under free trade agreements. Improving access to finance through credit guarantees and interest support, alongside stronger data systems, is also seen as critical.

Source: https://www.financialexpress.com