Executive snapshot

• Total gems & jewellery exports (FY 2024–25): US$28.5 billion (down ~11.7% YoY) — the decline was led by cut & polished diamonds but plain gold & silver jewellery showed pockets of strength.
• Cut & polished diamonds remain the single largest sub-category (India processes a very large share of the world’s rough diamonds) — cut & polished diamond exports were about US$13.3 billion in FY24–25. Gold jewellery and silver jewellery together make up the other large shares of value in the sector.

What India exports

• Product categories: cut & polished diamonds (studded jewellery), plain & studded gold jewellery, silver jewellery & articles, platinum jewellery, coloured & semi-precious gemstone jewellery, imitation/jewellery articles and parts (mountings, findings).
• Recent direction: While diamond exports softened in FY24–25, plain gold jewellery exports rose in some months (price effects and retailer demand affected values), and silver jewellery export volumes also showed growth in parts of 2024–25. Markets and segments move differently — e.g., plain gold often benefits from bullion price dynamics while studded jewellery tracks diamond demand.

Top export markets

• United States, UAE, Hong Kong, Belgium, UK and other European markets are key destinations; the US is historically the single largest market by value (nearly a third of exports in recent years). The Gulf (UAE) is both a re-export hub and a direct buyer for plain/studded gold items.

Regional clusters — where to source what

• Surat (Gujarat) — India’s diamond cutting & polishing capital; extremely high volumes of polished diamonds and a growing shift into studded jewellery. Surat/Western region accounts for a very large share of national exports.
• Mumbai / Navi Mumbai — bullion trading, export houses, and diamond trading desks (financial hub + port access). Many large exporters and diamond merchants are headquartered here.
• Jaipur (Rajasthan) — coloured gemstone cutting, traditional gold & Kundan/Kempu/Meenakari styles, silver jewellery and design-led artisan production; strong SEZ/cluster push for exports.
• Thrissur / Kochi (Kerala) and Kolkata — strong domestic gold jewellery manufacturing hubs (Kerala known for traditional temple and plain gold designs).
• Other pockets: Tamil Nadu (Chennai/Coimbatore for manufacturing), Hyderabad and small clusters across Gujarat & Rajasthan for specialised processes and artisanship. Western region (Gujarat + Mumbai) contributed ~75% of exports in recent reporting windows.

Quality & certification — why buyers should trust Indian jewellery

• Mandatory BIS hallmarking for gold: India’s Bureau of Indian Standards (BIS) runs a mandatory hallmarking scheme (expanded in phased rollouts) to ensure purity (IS standards) and traceability; over 40 crore gold items have been hallmarked under the scheme as part of its rollout. Hallmarking provides consumer protection and export credibility for gold jewellery.
• Standards & test reports: For exports buyers typically request metal assay reports, hallmark/HUID records, karat certifications, gemological certificates (GIA/IGI/HRD for diamonds and high-value stones), and certificates for plating/finish where applicable. Larger exporters provide in-house or third-party lab reports and traceability.

India-specific strengths

• Scale & vertical integration — from rough-diamond import and cutting (Surat) to jewellery finishing, India offers end-to-end capability enabling cost-efficient processing and quick turnarounds for high volumes. India processes a very large share of global rough diamonds, which feeds its export capability.
• Cost & skilled labour — competitive labour costs for intricate handwork (Kundan, Meenakari, hand engraving), and a deep pool of skilled artisans and bench jewellers supporting high-mix production.
• Design & craftsmanship — strong traditional and contemporary design schools (Jaipur, Mumbai, Hyderabad) combined with increasing adoption of CAD/CAM and casting automation. Trade fairs (JAGS, IIJS) and GJEPC programs help design export readiness.
• Established trade & export infrastructure — large export houses, SEZs and trade facilitation by GJEPC and state agencies (Jaipur SEZ examples and Gujarat clusters). Western region dominance (esp. Gujarat) supports export scale.

Key challenges & risks buyers should watch

• Price & bullion volatility — gold jewellery values are strongly influenced by international gold prices; sudden price swings affect landed cost and margins. Buyers must agree on price clauses or currency/price hedges.
• Tariff & market access shocks — recent news (tariff proposals/uncertainties) have shown how quickly demand can re-route (e.g., US tariff discussions affecting shipments). Political trade moves can hit hubs like Surat very hard.
• Quality variability at MSME level — while large export houses meet global standards, many small units may lack consistent QMS; robust qualification and sample testing are needed.
• Dependency on imported bullion & diamonds — India imports most of its gold and rough diamonds; import cost / foreign exchange / customs controls directly affect exporters’ raw-material economics.

Practical buyer due-diligence checklist

Use these as RFQ/addendum items when qualifying an Indian jewellery supplier:

Company & export credentials

• Years in business, export licence (IEC), list of export customers & recent shipment references. Request GJEPC membership/registration where applicable.

Certificates & assay

• BIS hallmark / HUID proof for gold items (scan + HUID lookup), assay/chemical composition for metals, karat declaration. Request gem certificates for diamonds (GIA/IGI/HRD) or lab-grown diamond certificates as applicable.

Process & traceability

• Bill of materials showing bullion/rough diamond source, lot/batch traceability, melt/assay records, and production logs for each shipment. Verify hallmark HUID against BIS portal.

Quality control

• Provide sample inspection reports, photos, C of C, dimensional drawings (for fittings), packing & cushioning specs, and acceptance criteria (ppm/tolerance). Ask for third-party lab test reports if required (e.g., plating thickness, metal composition).

Packaging & export readiness

• ESD/anti-tarnish packaging for silver, secure bullion accounting & chain-of-custody documentation, export packing list, suggested HS codes and Incoterms (FOB/CIF). Confirm export labelling rules for target market (CE/UKCA not typical for jewellery but country-specific marking & consumer safety declarations may apply).

Compliance & insurance

• Anti-money-laundering / KYC for high-value bullion/diamonds, POLICIES for conflict-free sourcing, insurance for in-transit bullion/gems, and warranty/return policies. Verify that supplier follows AML/KYC norms for diamond/bullion trade.

Commercial terms

• Price formula for gold items (e.g., base metal price + making charge), currency/price adjustment clauses, lead times, MOQ, payment terms (L/C, CAD, TT) and dispute resolution. Include force-majeure and tariff-shock mitigation clauses.

Short recommendations

• Large / consistent volumes of plain gold / simple silver items: source from Kerala (Thrissur), Gujarat (smaller plain goods clusters) or established export houses in Mumbai for robust supply & hallmarking.
• High-value studded / diamond jewellery: source from Surat processing houses and Mumbai diamond merchants — insist on GIA/IGI certificates and BOM traceability for stones.
• Design-led/handcrafted & coloured gemstone jewellery: Jaipur and Udaipur are strong — for Kundan, meenakari and gem work prefer Jaipur workshops with SEZ/export experience.