【Mumbai, Indi】Jewelry Exports: How Trade Agreements with Various Countries Have Benefited the Jewelry Industry – Understanding Expert Views

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Editor’s Note

While US tariffs have significantly impacted India’s gem and jewelry exports, new Free Trade Agreements have helped stabilize the sector in 2025. This analysis explores how shifting trade policies are reshaping global markets.

The jewellery industry has benefited from trade agreements with various countries; what experts are saying
Summary

India’s gem and jewelry exports have been impacted by US tariffs, leading to a 30 percent decline. Despite this, India’s gem and jewelry exports remained stable in 2025 due to new Free Trade Agreements (FTAs) with various countries.

Details

The Gem & Jewellery Export Promotion Council (GJEPC) states that despite pressure from US tariffs and weak demand from China, India’s gem and jewelry exports remained stable in 2025, supported by Free Trade Agreements (FTAs). Exports stood at $19 billion until November. GJEPC Chairman Kirit Bhansali explained that exports have been maintained at $19 billion due to new markets, with FTAs providing significant support to the industry.

New Markets Offset China’s Slowdown
“An economic slowdown has been observed in China, but its impact has been mitigated through diversification. Free Trade Agreements with countries in West Asia, Europe, and Africa have compensated for China’s slowdown.”

Exports to countries like the United Arab Emirates, New Zealand, Australia, the UK, and Oman are growing rapidly, with shipments to the UAE increasing by nearly 30 percent this year.

Exports to the US Fell Over 30 Percent
“After the tariff increase, our exports to US markets have decreased by over 30 percent.”
“Amid uncertainty in the US and China, 2026 could be challenging, but market diversification and policy support from FTAs will remain crucial for our export strategy in this region. It would not be wrong to say that the US is a significant market for us, and we do not want to lose it. Under the leadership of Prime Minister Narendra Modi, we hope trade talks will progress soon.”
Oman Emerges as New Trade Hub for India

Oman is emerging as a manufacturing and trading hub, seen as a gateway to countries in Africa and the GCC (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain). Bhansali said interest in setting up factories is increasing with the help of land, human resources, and labor visas. Alongside this, strong demand has grown for several other categories, such as polished diamonds and gold jewelry. This could provide diverse market opportunities for Indian jewelry manufacturers and exporters. Demand for plain gold jewelry in this region has increased by up to 80 percent.

Gold Demand to Remain Steady

The industry says gold demand remains steady in the country, with customers having accepted the high prices of gold and silver. Despite this, gold prices remain at record levels, so purchases are being made with some caution. Domestic demand may increase due to the wedding season between December 2025 and March 2026, although prices are expected to remain high. In terms of value, exports may remain stable due to high prices, but volume based on weight could decline by 15 to 20 percent this calendar year.

Growth Seen in Demand for Natural Diamonds
“Demand for natural diamonds has seen growth of 11 to 15 percent. Currently, after the recent weakness, diamond prices appear to be stabilizing. I do not see any expectation of a price decline from here. If trade momentum picks up between the US and India, prices could increase.”
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⏰ Published on: January 09, 2026