India’s gem and jewellery exports to GCC (Gulf Cooperation Council) countries have grown significantly from $5.4 billion in 2021–22 to about $8.3 billion in 2024–25, reflecting the region’s increasing importance for Indian exporters.
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SAHIBA CHAWDHARY
The ongoing war in West Asia and the disruptions on global shipments will have a major impact on gem and jewellery exports from India, as the sector grapples with delays in cargo movements and rising costs, industry players said.
The industry is struggling to fulfil the pending export orders amid restrictions in cargo movements due to closure of airspace, while rising insurance costs remain a major concern.
This apart, the volatility in rupee-dollar rates and gold prices are also seen impacting the future course of business, they said.
Kirit Bhansali, Chairman, Gem and Jewellery Export Promotion Council of India, said the ongoing tensions in West Asia could have a significant impact on the gem and jewellery trade as the region, particularly the UAE and other GCC countries, plays a crucial role in India’s export ecosystem as well as in sourcing raw materials.
India’s gem and jewellery exports to GCC (Gulf Cooperation Council) countries have grown significantly from $5.4 billion in 2021–22 to about $8.3 billion in 2024–25, reflecting the region’s increasing importance for Indian exporters.
Sourcing hub
The GCC is also a key sourcing hub for raw materials and precious metals for the Indian gem and jewellery sector, with imports rising from about $16 billion in 2021–22 to about $28 billion in 2024–25.
The GCC countries and the wider MENA region are also key business hubs where Indian companies have established strong commercial interests including investments in jewellery retail chains, regional offices, manufacturing units and logistics networks across the region, said Bhansali.
If the conflict continues, it could lead to logistical challenges as flight disruptions will mean re-routing of shipments and delays at ports, which may result in longer transit times. There could also be a rise in freight and insurance costs due to the heightened risk perception in the region, he pointed out.
Wave of uncertainties
Colin Shah, MD, Kama Jewelry, a leading exporter, said the gems and jewellery sector, that is just coming out of a high tariff regime imposed by the US, is facing a fresh wave of uncertainties due to the crisis in West Asia. This is being compounded by the volatility in dollar rates, leading to unpredictability in exports with overseas buyers being cautious in closing deals as trade can happen only if logistical constraints are eased, he said.
Additionally, a 3-4 time spike in the insurance on shipments is another concern cutting through the already impacted margins of traders, he added.
However, the demand-supply dynamics in gem and jewellery exports are in control as there are sufficient inventories in place to cater to already impacted demand, said Shah.
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Published on March 4, 2026