Editor’s Note
**Editor’s Note:** This report examines the apparent contradiction between Prime Minister Modi’s call to avoid jewelry purchases and the booming domestic jewelry market, which is now doubling in size amid rising global demand for Indian-made pieces.
Prime Minister Narendra Modi has urged people to avoid buying jewelry. Interestingly, India’s jewelry market is doubling in size. Read the report.
Demand for domestically made jewelry is rapidly increasing abroad. Data on jewelry made from diamonds and other gemstones shows that despite global economic challenges, people’s passion for jewelry remains strong. Figures from June 2025 to June 2026 indicate that jewelry demand has risen by nearly 35%.
This is a positive sign for the country’s economy. Amid global economic instability, India continues to trade significantly in the jewelry and gemstone sector. The growth in India’s exports could bring good days for many sectors dependent on the jewelry trade, bringing in foreign currency.
According to the Ministry of Commerce and Industry, comparing June 2025 to June 2026, the increase is approximately 35%, with the exact figure being 34.64%. Last year, India sold jewelry and gemstones worth about $1.79 billion, equivalent to around ₹15,000 crore.
By June, the figures rose further, with earnings reaching $2.41 billion, or about ₹20,000 crore. Within just one year, India earned over ₹5,000 crore by selling jewelry and gemstones globally.
India’s jewelry trade is centuries old, with millions of people directly or indirectly dependent on it. If exports increase, it will create more jobs and better income opportunities. Demand for Indian jewelry is rising in the US, Europe, and the Middle East.
According to the Indian Brand Equity Foundation (IBEF), gold Exchange Traded Funds (ETFs) saw an investment of $2.72 billion (around ₹24,040 crore) in January 2026, nearly double compared to December. Silver ETFs also attracted $1.07 billion (around ₹9,463 crore).
IBEF’s report indicates that investors are now showing interest in this sector beyond stocks. India’s gold ETF holdings surpassed 110 tonnes in January 2026, up from 77.3 tonnes in September 2025, driven by record investments and increasing participation.
Demand for lab-grown diamond jewelry is also rising rapidly globally. According to IBEF, total FDI in diamond and gold jewelry from April 2000 to December 2025 reached ₹9,727 crore (about $1.52 billion). The government has eased 100% FDI in this sector. Agreements with the UAE and Australia could further boost trade. The government aims for exports of $70 billion by 2030.
India’s jewelry market was valued at ₹7.31 lakh crore (about $85 billion) in January 2026. It is projected to grow to ₹11.18 lakh crore (about $130 billion) by 2030, which would be revolutionary for India.
Titan launched a lab-grown diamond brand ‘Beyon’ in January 2026. Limelight Diamonds plans to open over 100 stores in 2026. Brands like Gargi and Sabyasachi are also expanding their reach. IIT is assisting in research for lab-grown diamonds.
