India’s $85 billion Framework to Include Jewellery, Boosting India’s Global Trade Ambitions

• Jewellery now formally included under FTWZ framework, completing the SEZ value chain.

• Enables secure storage, display, and trading of finished jewellery.

• Streamlines logistics, eases compliance, and lowers supply chain costs.

• Strengthens India’s competitiveness against hubs like Dubai and Hong Kong.

• Supports export growth amid a projected $130 billion market by 2030.

• Positions India as a global jewellery trading and distribution hub.

  
  

In a significant policy update for the gems and jewellery sector, the government has broadened the scope of the Special Economic Zones (SEZ) Rules, 2006, to formally include jewellery within Free Trade Warehousing Zones (FTWZ). The development, highlighted by the Gem and Jewellery Export Promotion Council (GJEPC), is being viewed as a strategic step toward strengthening India’s credentials as a dependable international trading centre.

Previously, a March 3, 2016 circular permitted FTWZ units to store and vault high-value commodities such as gold, silver, platinum, and precious stones. With the latest clarification, jewellery has now been explicitly brought under the same framework. According to GJEPC, this amendment effectively completes the value chain within the SEZ-linked FTWZ ecosystem, allowing finished products to be seamlessly integrated into the existing infrastructure.

Kirat Bhansali, Chairman of GJEPC, described the move as particularly timely given the evolving global trade landscape. He noted that enabling secure warehousing and smoother movement of high-value goods will enhance operational efficiency while reinforcing India’s reputation as a competitive and trustworthy destination for global gems and jewellery trade.

Industry stakeholders across the country have responded positively. Jayanti Savaliya, GJEPC’s Regional Chairman in Surat, emphasised the potential benefits for the city’s globally recognised diamond industry. He suggested that the decision could significantly streamline logistics, simplify regulatory compliance, and provide momentum to export growth, calling it a transformative step for the sector.

Prapanjj S.K. Kota, Founder of Reia Diamonds, echoed similar sentiments, particularly highlighting advantages for manufacturers and retailers dependent on imported inputs, including lab-grown diamonds. He observed that improved warehousing and trading mechanisms would likely reduce costs and create a more efficient supply chain. Internationally, he added, the reform strengthens India’s standing against established jewellery trading hubs such as Dubai and Hong Kong.

Kota further pointed out that the change could pave the way for deeper global engagement. Faster cargo movement, enhanced pricing transparency, and expanded export opportunities—especially in the rapidly growing lab-grown diamond segment—are among the expected outcomes. He characterised the decision as part of a broader shift toward modernising and globalising India’s jewellery industry.

The policy update comes at a time when the sector is witnessing strong growth. According to data from the India Brand Equity Foundation (IBEF), the country’s gems and jewellery market, valued at Rs 7,31,255 crore (approximately $85 billion) in January 2025, is projected to expand to Rs 11,18,390 crore (around $130 billion) by 2030. The new FTWZ provisions are expected to support this upward trajectory by addressing structural gaps in the trading framework.

GJEPC noted that earlier regulations did not clearly permit the storage, display, and trading of finished jewellery within FTWZs. The updated rules now provide a structured and secure mechanism for managing high-value inventory, a particularly important factor amid global economic uncertainties. Additionally, the changes are expected to ensure smoother consignment-based transactions and facilitate efficient redistribution of goods to international markets from India.

Prerna Khurana, Director of Khurana Jewellery House in Amritsar, described the development as both practical and long overdue. She highlighted the increased flexibility it offers in inventory management, especially in the fine jewellery segment where liquidity and timing play a crucial role. Domestically, she believes the reform will significantly improve the ease of doing business and encourage more organised players to expand operations. On the global front, she sees the opportunity for India to evolve beyond manufacturing into a trading and distribution powerhouse.

To maximise the benefits of the reform, GJEPC has begun informing its members about the revised provisions and their implications. The council underscored that India’s FTWZs, supported by SEZ infrastructure, provide a regulated and stable environment conducive to efficient operations. By incorporating jewellery into this system, the country strengthens its position as a reliable alternative hub within the global supply chain—offering flexibility to international traders while reinforcing confidence in India’s regulatory ecosystem.

Taken together, the policy shift signals a concerted effort to modernise the industry’s operational framework and align it with global best practices. If implemented effectively, stakeholders believe it could mark a defining moment in India’s journey toward becoming not just a leading manufacturer, but also a central trading and distribution hub for jewellery worldwide.