India’s gem, jewellery sector aims to increase domestic sales by up to 15% in 2026 to offset war impact on exports

India's gem and jewellery sector aims for a 15% boost in domestic sales by 2026 to counter export challenges amid war impacts.

With the escalating crisis in West Asia, India’s gem, jewellery and diamond sector finds itself at a critical crossroads, as exports worth $1.5 billion to $2 billion are estimated to be at risk, with important shopping and destinations, including Dubai, facing unprecedented trade disruptions.

Sabyasachi Ray, executive director of Gem and Jewellery Export Promotion Council (GJEPC), the industry apex body, told The Hindu that the industry and trade body are doing everything possible to increase domestic consumption and sales at least by 10 to 15% during calendar year 2026 in order to offset the possible impacts of the war on exports. Mr. Ray was here in Bengaluru to participate in GJEPC’s annual expo.

Responding to a query on how the closures or restrictions of airspace and ports in Israel, Qatar, and UAE are affecting the daily movements of up to 500 diamond parcels flown between Surat, Mumbai, and Dubai, Mr. Ray said that although air cargo movement has not been significantly disrupted, the key impact has been reduced buyer presence in trading hubs like Dubai. “As a result, diamond parcels are being redirected. Non-Russian goods have largely shifted to Antwerp, while some trade has moved to India, Hong Kong, and Singapore,’’ he said.

On rising freight and insurance costs owing to logistics rerouting, he said, Indian exporters are facing margin pressure as trade has shifted from cost-effective hubs like Dubai to more expensive destinations such as Antwerp, Hong Kong, and Singapore. “While airfares remain relatively stable, insurance costs have risen significantly. For instance, shipping goods from Dubai to Hong Kong can cost around $3,000. Overall, these factors are expected to increase costs by 5–10%, contributing to an estimated $1.5 billion impact over the next three months,’’ he cautioned.

According to Mr. Ray, earlier, NRI and South Asian demand was serviced through Dubai. Now, exporters must target these markets directly. Key alternative hubs include Singapore, Australia, India, and New York, along with emerging routes via regions like Egypt.

Explaining how important gold is for individual investors, especially during market down-times like war, Mr. Ray said, “Gold is considered one of the safest investments during periods of uncertainty. When financial assets or real estate become unstable or risky, investors turn to gold due to its liquidity, portability, and universal acceptance.’’