India’s trade performance in the third quarter of FY26 displayed a mixed but resilient trend, according to NITI Aayog. Merchandise exports increased by 1.6%, while imports surged by 7.9%. Services exports saw a robust growth of 7.8%, leading to a sustained surplus that supported the overall external balance.
Suman Bery, Vice-Chairman of NITI Aayog, unveiled the latest edition of the ‘Trade Watch Quarterly’ for the period of October to December 2025. The focus of this quarter’s edition was on gems and jewellery, a crucial component of India’s labor-intensive manufacturing sector.
The global market size for gems and jewellery, excluding raw gold, was estimated at $378 billion in 2024, with India’s exports valued at $29.5 billion, representing 7.8% of the world’s exports. India’s export strength in this sector lies in diamonds and precious metal jewellery, accounting for more than half of the global demand, valued at around $207.3 billion.
India has established a strong global presence in these segments, with exports amounting to $26.7 billion. This success is attributed to its role as a leading processing hub, particularly in Surat, which has emerged as the world’s largest cutting and polishing center.
NITI Aayog pointed out structural challenges in the sector, including limited value addition, reliance on imported inputs, credit gaps, skill and design deficiencies, and inadequate integration into global trading hubs. The think tank emphasized the need for diversification into emerging segments like lab-grown diamonds, enhanced access to finance and raw materials, technological and skill investments, and robust policy frameworks to tackle these hurdles.
Suman Bery stressed the importance of aligning with evolving global demand, enhancing value addition, and addressing structural constraints in sectors like gems and jewellery to maintain competitiveness. The analysis revealed that India’s trade structure in this sector is characterized by high product and market concentration, with exports mainly targeted at key markets such as the United States, UAE, and Hong Kong.
