【India】Budget 2026: Gems & Jewellery Industry Seeks Measures to Position India as Global Diamond Trading Hub

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Editor’s Note

As the gem and jewellery sector navigates global challenges, its call for supportive measures in the upcoming budget underscores its vital role—contributing roughly 7% to India’s GDP. While recent trade agreements provide a foundation, sustained policy focus will be key to securing long-term growth and stability.

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Sector Seeks Boost Amid Global Headwinds

The gem & jewellery sector is looking for a much-needed boost from the Union Budget 2026-27 amid persistent global headwinds. While the recent India-EU free-trade agreement (FTA) has offered some relief and lifted sentiments, experts say further policy initiatives will be crucial to restore stability and momentum in the sector. The gems & jewellery sector contributes about 7% to India’s total gross domestic product (GDP).

Calls for Policy Clarity and Competitiveness

Paresh Parekh, Tax, Consumer Products and Retail Sector, EY India, says the Budget 2026 offers an opportunity to sharpen the sector’s competitiveness, reduce cost-drags, and leverage the industry’s export and employment potential.

“With exports of around $28-30 billion and employment for over 4.2 million people, policy clarity on GST and customs duties is critical to reversing recent downturns and unlocking future growth,” he says.

Parekh also highlights the need to amend the Customs Act for streamlined clearance and digital appraisals.

“Procedural reforms, including AI-enabled digital appraisals and risk-based clearances, will cut logistics and compliance costs—important especially with shifting global supply chains,” he states.

Besides this, he mentions encouragement of trade hub status for diamond markets that needs to be considered.

“Proposals to attract global brokers and a predictable tax regime can help India evolve into a diamond trading and value discovery hub,” he adds.
Emphasis on Tech and Innovation

Other experts in the industry call for a greater emphasis on tech-based advancements for the sector. Prapanjj S.K. Kota, Founder & CEO of Réia Diamonds, says that Budget expectations for MSMEs in technology-driven segments, such as lab-grown diamonds, focus on stronger support for innovation and advanced manufacturing.

“Incentives for research and development (R&D), capital assistance for modern equipment, and simplified compliance frameworks will be critical in building globally competitive capabilities. Such initiatives can strengthen domestic value chains and position India as a leading hub for sustainable and high-precision gem manufacturing,” he says.
Strengthening India’s Global Position

Echoing similar sentiments, Jignesh Mehta, MD and Founder of Divine Solitaires, says that geopolitical fluctuations at the macro-economic level and price volatility will continue to impact India’s natural diamond industry this year.

“With this Budget, we look forward to measures that will not only power the industry to stay resilient amid these shifts but also further cement India’s position as the world’s leading diamond cutting and polishing centre as well as a globally recognised trading hub,” he says.

Mehta adds that Indian-origin consumer brands with a global vision should receive stronger institutional support from the government for India’s diamond trading to leap into its next phase of international growth.

“This can be done via duty rationalisation or easier access to financing, enabling them to scale competitively on the global stage,” he says.
Industry Body’s Proposals

The Gem & Jewellery Export Promotion Council (GJEPC), in its proposals to Finance Minister Nirmala Sitharaman, urged the government to consider targeted duty rationalisation and procedural reforms that will help Indian manufacturers stay cost-competitive.

“Our pre-Budget proposals are focused on making Indian exports more cost-efficient, strengthening SEZ operations, and improving policy frameworks that encourage investment and skill development. A key objective is also to establish India as a global diamond trading hub, complementing its position as the world’s leading cutting and polishing centre. With supportive reforms and a stable trade ecosystem, India can not only weather current global challenges but also lead the next phase of growth in the international jewellery market,” Kirit Bhansali, Chairman of GJEPC, highlights.
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⏰ Published on: February 04, 2026