New Delhi —Industry leaders say India’s economy is set to strengthen in 2026 and that recent free trade agreements will give exports measurable momentum, with the gems and jewellery sector among the clearest short-term beneficiaries.
- Price: $7.8M/day (gems & jewellery exports)
- Carat Weight: N/A — high-volume trade across cut and polished stones
- Origin: India (textile and gems hubs concentrated in Gujarat)
- Date: FTAs signed in 2025; forecasted acceleration through 2026
Context
Speaking to IANS, industry figures credited policy stability and an expanding network of trade pacts — notably with Oman, New Zealand and the UK — with creating clearer market access and tariff relief that will add tangible heft to export flows. Ashok Jirawala, president of the All Gujarat Textile Federation, framed India’s rise to the world’s fourth-largest economy as the product of consistent governance and supply-side measures: better yarn availability, improved logistics and targeted support for exporters.
The gems and jewellery sector, represented by leaders such as Nainesh Pachchigar of the India Bullion and Jewellers Association (Gujarat), already ships roughly $7.8 million of product daily. That figure captures a mix of polished stones, finished pieces with vitreous luster and cast or hand-finished mounts — a supply base with substantial heft ready to scale when market access widens.
Nikhil Madrasi of the Southern Gujarat Chamber of Commerce points to a broader strategy: to reduce overdependence on a single market and to build alternative trade corridors that support India’s stated aim of moving into the world’s top three economies by 2028. FTAs signed in 2025 are a tactical step in that direction.
Impact for US retailers and investors
For US retailers, the immediate implications are practical and price-sensitive. Lowered tariffs and streamlined rules of origin can reduce landed costs on key categories — particularly mid- to upper-tier jewellery that depends on Indian finishing and polishing. Expect a compression in procurement lead times and improved margin optionality for retailers who adjust assortment toward products with a clear provenance and compliance documentation.
Investors should view three vectors: 1) supply-side scale — larger, more frequent shipments that improve inventory velocity; 2) product mix — a shift toward sculptural aesthetics and lab-grown stones as brands chase sustainable narratives; and 3) geopolitical diversification — less exposure to single-market disruptions as India expands FTAs.
Operationally, US buyers will need sharper due diligence: factory-level audits focused on sustainable inputs, lab-grown certification where relevant, and logistics partners versed in the new tariff frameworks. For jewelers, the commercial opportunity is not only price-driven — it is about sourcing pieces with a palpable finish, controlled provenance and a refined “silk-like” supply chain that aligns with US consumers’ premium expectations.
In short: the FTAs signed in 2025 do more than open ports. They change the calculus for margins, inventory rhythm and product storytelling. For retailers and investors who act now — aligning purchasing, compliance and marketing around the shift — the coming year could deliver measurable gains in both top-line growth and inventory efficiency.
Image Referance: https://www.thehansindia.com/business/indias-economy-to-grow-stronger-in-2026-exports-to-rise-on-ftas-industry-1035563