Why in the News
The ongoing conflict involving Iran, Israel and the United States in West Asia is expected to disrupt supply chains and trade for India’s gem and jewellery sector, according to the Gem and Jewellery Export Promotion Council (GJEPC).
Why the Industry is Vulnerable
- Heavy Dependence on GCC Region
- India’s gem and jewellery trade relies strongly on the Gulf Cooperation Council (GCC) countries.
- GCC share in India’s exports increased from 14% in FY22 to about 22% in FY25.
- During April–December 2025, the share rose to 36%.
- Major markets include: United Arab Emirates and Saudi Arabia
- UAE as a Key Trade Hub
- The UAE plays a crucial role in India’s jewellery trade.
- Supplies rough diamonds and bullion to India.
- Major centre for diamond trade in Dubai.
- Accounts for a large share of gold bar imports to India.
Trade Data Highlights
- India’s gem and jewellery exports to GCC grew from $5.1 billion (FY22) to $8.3 billion (FY25).
- Imports from GCC rose from $16 billion to $28 billion during the same period.
- GCC countries supply over 30% of India’s jewellery imports.
| [2016] Which of the following is not a member of ‘Gulf Cooperation Council’? (a) Iran (b) Saudi Arabia (c) Oman (d) Kuwait |
