3 months ago
1
The Indian gem & jewellery industry, which was upbeat aft the announcement of the projected U.S.-India Trade Agreement successful February, is expecting a large interaction connected commercialized connected relationship of the escalating geopolitical tensions successful West Asia. While the U.S.-Israel aerial strikes were initially directed astatine Iran, sidesplitting its long-standing Supreme Leader Ayatollah Ali Khamenei on with the country’s apical brass, Iran’s subject effect extended the warfare to full of the oil-rich Gulf Cooperation Council (GCC) portion creating acute instability and uncertainty.
Apex commercialized assemblage the Gem & Jewellery Export Promotion Council (GJEPC) has expressed heavy interest implicit the escalating tensions implicit the past week arsenic it volition beryllium a dual daze to India’s s gem & jewellery proviso chain.
India is heavy babelike connected the UAE for some exports and earthy materials. India’s Cut and Polished Diamond (CPD) and golden jewellery exports travel to UAE which supplies unsmooth diamonds and bullion to the Indian market.
According to commercialized assemblage the warfare is starring to upstream proviso disruptions and posing threats to earthy worldly inflows. This is owed to closure of flights and ports successful Israel, Qatar, Kuwait and UAE. So, it has led to request and proviso shocks.
The downstream marketplace disruptions person started impacting request successful UAE, a cardinal centre. Rerouting via Red Sea is rising freight and security costs. In a concern of proviso constraints and request volatility the gem and jewellery manufacture is facing proviso concatenation risk, the assemblage emphasized.
The GCC markets remained important for India’s gem & jewellery assemblage owed to taste preferences and precocious user demand.
As per disposable data, GCC’s stock of India’s full exports doubled from 14% successful FY22 to astir 22% successful FY25l rising to 36% during April-December 2025.
India’s gem & jewellery exports to GCC surged from $5.1 cardinal successful FY22 to $8.3 cardinal successful FY25, showing beardown growth.
According to GJEPC information UAE and Saudi Arabia are starring importers driving the bulk of gem & jewellery commercialized successful the GCC region. The maturation was driven by demand, commercialized policies, taste affinity, improved logistics and targeted marketing.
The GCC has emerged arsenic a cardinal sourcing hub and its stock has surged to 32% implicit the past 4 years. India’s gem & jewellery imports from GCC had surged from $16 cardinal successful FY22 to $28 cardinal successful FY25.
GCC countries proviso implicit 30% of India’s gem & jewellery imports providing earthy materials and precious metals. In each these UAE acts arsenic a cardinal hub for golden and diamond imports and had ensured businesslike proviso chains for the Indian jewellery industry.
Also the GCC has emerged arsenic a cardinal maturation marketplace for India’s CPD exports and its stock has tripled to 26% (in April- December 2025) from 8.7% successful FY22.
According to a study by Crisil West Asia is simply a large trading hub with Israel and UAE unneurotic accounting for 18% of full diamond exports successful the archetypal 9 months of this fiscal. Additionally 68% of each Indian unsmooth diamond imports are from UAE and Israel owed to the auctions held successful the region.
India’s exports of CPD to GCC countries reached $19 cardinal successful FY25 and GCC’s stock successful India’s CPD exports roseate to 15% boosted by rising user request and favourable commercialized policies, arsenic per GJEPC. Dubai serves arsenic a cardinal diamond trading hub with bilateral agreements enhancing commercialized flows. Now that Dubai has travel nether attack, uncertainties person caused interest and concern disruptions.
GCC has besides emerged arsenic a ascendant marketplace for India’s golden jewellery exports. This portion accounts for implicit 50% of India’s golden jewellery exports. According to GJEPC information golden barroom imports from GCC countries surged to 209 tons valued astatine implicit $17.5 cardinal successful FY25.
GCC countries lend implicit 27% of India’s golden barroom imports and this highlights the region’s proviso concatenation importance.
“The concern is simply a substance of superior concern, and we anticipation for stableness and bid to instrumentality astatine the earliest to marque it conducive of conducting regular concern activities. Being a cardinal hub for golden barroom imports, UAE supports India’s jewellery manufacturing and retail sectors,” the commercialized assemblage said.
“From an manufacture standpoint, the GCC countries and MENA portion is not lone an important export destination for India’s gem and jewellery sector, but besides a cardinal hub wherever Indian companies person established concern interests,” GJEPC said.
“These see important investments successful jewellery retail chains, determination offices, manufacturing units, and logistics networks among different commercialized verticals. GJEPC’s India Jewellery Exposition Centre (IJEX) successful Dubai and the Saudi Arabia Jewellery Exposition (SAJEX) initiatives are examples of semipermanent investments crossed the Middle East,” it said.
Stating that the Gulf portion is besides location to a ample Indian diaspora, galore of whom are straight associated with the gem and jewellery trade, the assemblage said fixed these heavy connections, immoderate prolonged instability tin person implications for concern sentiment, question of goods, imports of earthy materials , exports of finished goods and wide marketplace dynamics.
“At present, the manufacture is intimately monitoring developments and adopting a cautious wait-and-watch attack portion continuing mean concern operations wherever feasible. GJEPC remains successful interaction with stakeholders from Industry and Government of India. We volition measure the evolving concern to measure immoderate imaginable interaction connected India’s gem and jewellery exports and would impulse the Government to instrumentality steps accordingly,” it added.
