Union Home Minister Amit Shah on Sunday said India is poised to emerge as a global hub for gems and jewellery in the coming years, urging the industry to take the lead in building a complete, India-owned value chain for the emerging lab-grown diamond market.
Addressing the 52nd India Gems and Jewellery Awards ceremony in Mumbai as the Chief Guest, HM Shah said the industry has played a significant role in India’s economic growth, exports and employment generation.
Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde, Gujarat Deputy Chief Minister Harsh Sanghavi and several other dignitaries were present at the event.
HM Shah said the Gems and Jewellery Awards, whose foundation was laid in 1975, have evolved over five decades into a prestigious platform recognising excellence in India’s gems and jewellery sector. He congratulated exporters, manufacturers, bankers and women entrepreneurs who were honoured at the ceremony, saying their achievements had set new benchmarks for India’s growth.
India has long tradition of gems and jewellery
HM Shah said gems and jewellery have been an integral part of India’s identity for more than 6,000 years and that Indian gems and spices have historically been traded across the world.
He highlighted the contribution of Indian artisans and craftsmen in developing the country’s jewellery traditions over centuries. He noted that royal patronage during the medieval period helped jewellery craftsmanship reach new heights, while Rajasthan and Kolkata developed distinctive traditions such as Kundan and Meenakari. Jaipur, he said, continues to be renowned globally for coloured gemstones.
HM Shah also highlighted Surat’s contribution to the global diamond industry, noting that nearly nine out of every ten diamonds cut and polished worldwide are processed in the city.
He said Surat’s diamond traders have not only created employment for millions and contributed significantly to India’s economy and exports but have also contributed to social development. He recalled their efforts towards securing water for Kutch and Saurashtra and helping prevent the region from turning into a desert.
Mumbai emerging as key centre for gems and jewellery trade
HM Shah said Mumbai, the country’s financial capital, has played a major role in establishing gems and jewellery as a key pillar of India’s exports.
The Bharat Diamond Bourse has emerged as a global symbol of India’s gems and jewellery trade, he said.
The Union Minister also highlighted the government’s efforts to strengthen infrastructure for the sector. He said Prime Minister Narendra Modi recently inaugurated the Bharat Ratnam Mega Common Facility Centre at SEEPZ in Mumbai. Spread across 1.25 lakh square feet, the centre has facilities including 3D printing, casting and refining.
He said the India Jewellery Park is another landmark project, expected to attract around ₹50,000 crore in investment and generate direct and indirect employment for one lakh people. The Maharashtra government has extended several incentives for the project, including stamp duty exemption, electricity concessions and enhanced subsidy rates.
HM Shah said the gems and jewellery industry reached ₹2.44 lakh crore in 2025, accounting for 6.3 per cent of India’s merchandise exports, while providing direct and indirect employment to around 75 lakh people.
Government initiatives to expand global trade
HM Shah said India has emerged as a major source of jewellery imports for markets including the United States, the Middle East, Hong Kong and Europe.
He said the Free Trade Agreements entered into by India with the European Union, the United Arab Emirates, Australia, Oman and the United Kingdom provide significant opportunities for the industry to expand its international presence.
He urged the industry to explore new markets, trade avenues and opportunities with confidence and determination.
HM Shah noted that India currently processes more than 90 per cent of the world’s cut and polished diamonds, describing this as a strong testament to the enterprise and capabilities of the country’s jewellery industry.
India must lead the lab-grown diamond value chain
HM Shah said changing consumer preferences and the emergence of lab-grown diamonds present a major opportunity for India’s gems and jewellery sector.
He said the era of lab-grown diamonds is set to emerge, with the market expected to grow to nearly 50 times the size of the current diamond market.
Calling the development a “tremendous opportunity”, HM Shah said India today possesses the infrastructure, skills, capital and entrepreneurial capabilities needed to become a pioneer in the new era of lab-grown diamonds.
He stressed that the entire ecosystem and manufacturing value chain should be under Indian ownership, covering the manufacture of machinery, production of lab-grown diamonds, jewellery manufacturing, branding and global retail.
“From manufacturing the machines to the showroom where the jewellery ultimately reaches a woman’s hand, India must have ownership of the entire ecosystem,” HM Shah said.
He said the governments of Gujarat and Maharashtra are bringing in supportive policies, while the Centre is also working on appropriate measures to support the industry.
HM Shah called upon Indian jewellery companies to develop global brands and establish showrooms across the world, saying India should emerge as a pioneering industry in the lab-grown diamond era.
He added that the Narendra Modi government is ready to provide all possible support to achieve this objective.
India among world’s fastest-growing major economies
HM Shah said the Narendra Modi government has brought about transformational changes across sectors over the past 12 years. He noted that India, which was counted among the “Fragile Five” economies in 2014, is now among the world’s top five economies.
He said India’s GDP grew by 7.8 per cent in the first quarter of the current financial year, making it one of the fastest-growing major economies in the world.
HM Shah said infrastructure development, Production Linked Incentive (PLI) schemes and measures to promote exports have provided a major boost to economic activity.
He said PM Modi has given the country a resolve to become the world’s foremost nation across sectors by August 15, 2047, and that the people of India have embraced this vision.
Tax incentives to boost rough diamond trade
HM Shah highlighted the Taxation and Other Laws (Amendment) Act, 2026 as an example of the government’s efforts to respond to changing global trade conditions.
He said companies engaged in the trading of rough diamonds in specially notified areas have been granted an income tax exemption for 15 years. HM Shah said the measure marks an important step towards establishing India as a global hub for rough diamond trading.
He also referred to the Bharat Ratnam Mega Common Facility Centre and the India Jewellery Park as part of efforts to strengthen the sector’s infrastructure and competitiveness.
Industry urged to continue its social contribution
HM Shah praised the gems and jewellery industry for its longstanding contribution to society, particularly during times of crisis.
He said the industry has consistently supported communities during droughts, floods and cyclones and has contributed to water conservation, tree plantation and education for the children of artisans and employees.
He urged leading industrial houses, young entrepreneurs and technologists to take forward the vision of building the entire future diamond value chain in India and ensuring that Indian brands lead the global marketing chain.
HM Shah said merely increasing the pace of work would no longer be enough and that the industry must transform the scale of its operations to establish India as a global leader in the next phase of the gems and jewellery sector.
