India’s gems and jewelery trade has carried out properly following the announcement of the proposed US-India commerce deal in February, however the firm expects rising geopolitical tensions in West Asia to have a serious impression on commerce. U.S. and Israeli airstrikes had been initially directed at Iran, killing longtime Supreme Chief Ayatollah Ali Khamenei and different prime Iranian officers, however Iran’s navy response expanded the battle throughout the oil-rich Gulf Cooperation Council (GCC) area, creating extreme instability and uncertainty.
The Gems and Jewelery Export Promotion Council (GJEPC), the apex commerce physique, has expressed deep concern over final week’s escalation of tensions, saying it has brought about a double shock to India’s gems and jewelery provide chain.
India is closely depending on the UAE for each exports and uncooked supplies. India’s reduce and polished diamond (CPD) and gold jewelery exports circulate to the UAE, which provides tough diamonds and bullion to the Indian market.
Business teams say the battle has disrupted upstream provides, threatening the circulate of uncooked supplies. That is as a result of closure of flights and ports in Israel, Qatar, Kuwait and the UAE. Subsequently, it created a requirement and provide shock.
Downstream market disruptions are beginning to impression demand within the UAE, a key hub. Rerouting by way of the Crimson Sea has elevated freight and insurance coverage prices. The group burdened that the gem and jewelery trade faces provide chain dangers in a state of affairs of provide constraints and demand volatility.
The GCC market remained vital to India’s gems and jewelery sector resulting from cultural preferences and excessive client demand.
In line with accessible information, the GCC’s share in India’s complete exports doubled from 14% in FY22 to round 22% in FY25, rising to 36% from April to December 2025.
India’s gems and jewelery exports to the GCC surged from $5.1 billion in FY22 to $8.3 billion in FY25, exhibiting sturdy development.
In line with GJEPC information, the UAE and Saudi Arabia are the most important importing international locations driving nearly all of gems and jewelery commerce within the GCC area. This development was pushed by demand, commerce coverage, cultural affinity, improved logistics, and focused advertising and marketing.
The GCC has emerged as a serious sourcing hub, with its share hovering to 32% previously 4 years. India’s imports of gems and jewelery from the GCC surged from $16 billion in FY22 to $28 billion in FY25.
GCC international locations provide greater than 30% of India’s gems and jewelery imports as uncooked supplies and valuable metals. In all of this, the UAE has served as an vital hub for gold and diamond imports, making certain an environment friendly provide chain for the Indian jewelery trade.
The GCC has additionally emerged as a key development marketplace for India’s CPD exports, with its share growing three-fold from 8.7% in FY22 to 26% (April-December 2025).
West Asia is a serious buying and selling hub, with Israel and the UAE collectively accounting for 18% of complete diamond exports within the first 9 months of the present monetary yr, in response to a Crisil report. Moreover, 68% of India’s complete tough diamond imports come from the UAE and Israel as auctions are held within the area.
In line with GJEPC, India’s CPD exports to GCC international locations reached $19 billion in FY2025, with GCC’s share of India’s CPD exports rising to fifteen% resulting from rising client demand and favorable commerce insurance policies. Dubai serves as an vital hub for the diamond commerce, with bilateral agreements enhancing commerce flows. With Dubai beneath assault, uncertainty is inflicting concern and enterprise disruption.
The GCC has additionally emerged as a serious marketplace for India’s gold jewelery exports. This area accounts for over 50% of India’s gold jewelery exports. In line with GJEPC information, gold bar imports from GCC international locations surged to 209 tonnes (greater than $17.5 billion) in FY2025.
GCC international locations account for over 27% of India’s gold bullion imports, highlighting the significance of the area’s provide chain.
“The state of affairs is of grave concern and we hope that stability and peace will return as quickly as attainable so that standard enterprise operations can resume. The UAE, a key importer of gold bullion, is supporting India’s jewelery manufacturing and retail sector,” the commerce physique mentioned.
“From an trade perspective, the GCC international locations and the MENA area will not be solely vital export locations for India’s gems and jewelery sector but additionally vital hubs for Indian firms to determine enterprise pursuits,” GJEPC mentioned.
“These embody important investments in jewelery retail chains, regional workplaces, manufacturing models and logistics networks, amongst different commerce areas. GJEPC’s Indian Jewelery Exhibition Heart (IJEX) and Saudi Arabian Jewelery Exhibition (SAJEX) initiatives in Dubai are examples of long-term investments throughout the Center East,” the report mentioned.
The group mentioned the Gulf area is house to a big Indian diaspora, lots of whom are straight concerned within the gem and jewelery commerce, and given these deep connections, extended instability may impression enterprise confidence, motion of products, imports of uncooked supplies, exports of completed items and general market tendencies.
“Presently, the trade is intently monitoring developments and adopting a cautious wait-and-see method whereas persevering with regular enterprise operations to the extent attainable. GJEPC stays in contact with Indian trade and authorities stakeholders. We urge the federal government to evaluate the altering state of affairs and take steps accordingly to evaluate the potential impression on India’s gems and jewelery exports,” it added.
issued – March 6, 2026 8:53 PM IST
