India’s Jewellery Industry Goes Global: From Diamond Cutting Hub to Design Powerhouse

India’s gems and jewellery industry exported about US$27.72 billion worth of products in FY2025–26. But the more interesting story is not the size of the number. It is what is happening underneath it: Indian companies are increasingly trying to move from being the world’s manufacturing workshop to becoming a design, branding and value-creation powerhouse.

India has an unusual relationship with jewellery.

For millions of families, it is tradition.

For investors, it can be an asset.

For artisans, it is a livelihood.

For exporters, it is a global business.

And for the international jewellery industry, India has long been one of the places where an enormous share of the world’s diamonds gets transformed from rough stones into finished gems.

Now the industry wants to change the perception again.

Not merely:

“Made in India.”

But increasingly:

“Designed, crafted and created in India.”

$27.72 billion—but not a simple boom

India’s gross gems and jewellery exports reached approximately US$27.72 billion in FY2025–26, according to GJEPC and IBEF.

That is an enormous number.

But there is an important qualification.

Dollar-denominated exports actually declined 3.32% from the previous year, while rupee-denominated exports increased modestly. GJEPC describes the year as a period of structural adjustment, diversification and adaptation to geopolitical uncertainty and changing global trade conditions.

So this is not a story of Indian jewellery exports simply exploding.

It is a story of an industry changing its strategy while operating in a difficult global market.

And that makes it more interesting.

India remains a diamond powerhouse

India continues to occupy a remarkable position in the global diamond industry.

The country processes more than 90% of the world’s cut and polished diamonds by volume, according to industry data cited by IBEF.

Surat, Mumbai and other centres have built sophisticated ecosystems around cutting, polishing, jewellery manufacturing, trading and exporting.

That manufacturing expertise is a major competitive advantage.

But manufacturing alone can become vulnerable when margins are squeezed.

If the customer designs the product, controls the brand and owns the retail relationship, the manufacturer may capture only part of the value.

The bigger opportunity is therefore to move further up the value chain.

From contract manufacturing to design

This transition was visible at JCK Las Vegas 2026, one of the world’s major jewellery trade events.

GJEPC’s India Pavilion brought 33 Indian exporters together across 3,900 square feet, while the India Design Gallery presented specially created jewellery under the theme Quantum Couture. The collections combined Indian craftsmanship with contemporary design narratives including embroidery, miniature painting and layered forms.

That is more than a trade-show display.

It represents a deliberate positioning exercise.

India is telling international buyers:

We can manufacture at scale—but we can also design.

The distinction matters.

The world’s luxury market does not buy manufacturing capacity alone.

It buys stories, design, craftsmanship, identity and desirability.

India has plenty of stories.

The commercial challenge is turning them into globally recognisable products.

Trade agreements are opening doors

Trade policy is becoming another part of the industry’s strategy.

The India-UK Comprehensive Economic and Trade Agreement (CETA) entered into force on July 15, 2026. The agreement provides preferential access across a wide range of Indian exports, including labour-intensive sectors such as gems and jewellery.

The European market is also becoming strategically important.

Under the India-EU trade agreement announced in January 2026, Indian gems and jewellery received preferential access covering 100% of trade value, with tariffs that had been as high as 4% being addressed under the new framework.

These changes can improve competitiveness.

But tariff reductions alone do not create demand.

An Indian jewellery exporter still has to deliver the right design, quality, certification, pricing, logistics and consumer proposition.

A tariff advantage opens the door.

It does not persuade the customer to walk through it.

Oman shows why trade deals need nuance

The India-Oman CEPA is another example of why headlines about trade agreements need to be read carefully.

India and Oman signed the agreement in December 2025.

But the Commerce Ministry’s detailed tariff schedule identifies jewellery among sensitive products excluded from India’s tariff liberalisation.

That means it would be misleading to say the Oman CEPA automatically delivers sweeping tariff advantages to India’s jewellery industry.

Trade agreements are complicated documents.

The fine print matters.

Unfortunately, “tariff schedule” has never been as exciting a phrase as “historic trade deal”.

Economists may need better marketing.

Gold has become the industry’s biggest headache

There is another force reshaping jewellery worldwide:

the price of gold.

When gold becomes dramatically more expensive, consumers do not necessarily stop wanting jewellery.

They start thinking differently about it.

CIBJO’s 2026 precious-metals report notes that higher gold prices reduced jewellery consumption in several major markets and encouraged greater interest in lower-carat gold and platinum as alternatives.

India is experiencing the same pressure.

CIBJO reported that Indian jewellery consumption declined sharply in 2025 as domestic gold prices surged, with consumers becoming more price-sensitive and retailers expanding lighter and lower-carat collections.

This creates both a challenge and an opportunity.

A lighter piece can be more affordable.

A clever design can create visual impact without requiring an enormous quantity of gold.

And that is where Indian designers may have an advantage.

The rise of design-led jewellery

Indian jewellery has historically been associated internationally with elaborate gold work, bridal jewellery and diamond craftsmanship.

That remains important.

But contemporary Indian designers are increasingly experimenting with lighter pieces, coloured gemstones, modern silhouettes, layered jewellery and designs that can be worn beyond traditional ceremonies.

This is particularly relevant to younger consumers.

The old question was:

“How much gold is in it?”

The newer question can be:

“How good does it look?”

Of course, in India, someone will still ask how much gold is in it.

Probably before asking your name.

Lab-grown diamonds complicate the picture

The global diamond market is also undergoing a major transformation.

Lab-grown diamonds have expanded consumer choice and created a lower-cost alternative to natural diamonds.

For Indian manufacturers, that creates both an opportunity and a strategic challenge.

India’s existing diamond-cutting ecosystem gives it technical capabilities that can be applied to both natural and lab-grown categories.

But natural diamonds and lab-grown diamonds are not simply interchangeable products.

Their pricing models, consumer perceptions and long-term market positioning differ.

Indian exporters therefore increasingly have to understand the customer rather than merely manufacture whatever arrives in an order book.

The real opportunity is value per shipment

India’s jewellery industry already possesses enormous scale.

Its next challenge is to capture more value from that scale.

That means investing in:

• original design;
• Indian and international brands;
• advanced manufacturing;
• traceability and certification;
• responsible sourcing;
• digital retail;
• international distribution;
• skilled artisans;
• and stronger relationships with global consumers.

The shift is already visible at international exhibitions.

At JCK Las Vegas 2026, Indian exhibitors reported strong enquiries while presenting both high-volume manufacturing and higher-margin, design-centric jewellery.

That combination could become India’s strongest competitive model.

Scale + craftsmanship + design + technology.

What India must not ignore

There is also a less glamorous side.

The jewellery industry is exposed to gold prices, diamond-market volatility, exchange rates, geopolitical tensions, tariffs and changing consumer preferences.

Small exporters can face financing and working-capital pressures.

And international consumers increasingly expect greater transparency around sourcing, sustainability and product provenance.

India therefore cannot rely indefinitely on its reputation as a skilled manufacturing centre.

Reputation has to be maintained.

DOONITED Editorial Perspective

India’s jewellery industry does not need to choose between its traditional strengths and modern design.

It can use one to strengthen the other.

The country has millions of skilled artisans, world-class diamond-processing capabilities and a deep cultural relationship with jewellery.

Now it needs to convert those advantages into global brands and higher-value intellectual property.

The $27.72 billion export figure is impressive.

But the bigger ambition should be measured differently.

Can an Indian designer create a piece that becomes a global fashion statement?

Can an Indian brand build a loyal customer base in London, Dubai, New York and Singapore?

Can an Indian manufacturer command a premium because buyers want its design—not merely because it can produce cheaply?

If the answer becomes yes at scale, India’s jewellery story will have entered a new phase.

India has already proved that it can make the world’s jewellery. The next challenge is to make the world want jewellery created by India.