Gems & Jewellery Exports from India

Industry Overview

India's gems and jewellery sector is one of the country's largest export earners, contributing approximately $37.5 billion in exports annually. The sector employs over 5 million workers and accounts for roughly 7% of India's GDP. India processes 14 out of every 15 diamonds in the world, making it the undisputed global hub for diamond cutting and polishing. Beyond diamonds, India is a major exporter of gold jewellery, silver jewellery, coloured gemstones, costume and fashion jewellery, and pearls.

Key Subsectors

Major Hubs

India's gems and jewellery industry is concentrated in four major clusters, each specialising in different segments:

• · Surat, Gujarat. The world's diamond cutting and polishing capital. Over 90% of India's diamond processing happens here, with more than 5,000 cutting units. The Surat Diamond Bourse (SDB), the world's largest office complex, now hosts international diamond trading.
• · Mumbai (BKC & SEEPZ). The commercial hub for diamond trading, gold jewellery manufacturing, and export operations. The Bharat Diamond Bourse in BKC is the centre for international diamond trade. SEEPZ SEZ houses major jewellery export units.
• · Jaipur, Rajasthan. The global centre for coloured gemstone cutting, polishing, and trading. Known for emeralds, rubies, sapphires, and kundan/meenakari jewellery craftsmanship.
• · Thrissur, Kerala. The gold jewellery manufacturing hub, particularly for traditional South Indian designs and temple jewellery. Home to many of India's largest gold jewellery brands.

HS Code 71 Coverage

All gems and jewellery products fall under HS Chapter 71 ("Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin"). The 8-digit ITC-HS code determines your exact duty rates, RoDTEP eligibility, drawback rates, and FTA preferences.

Kimberley Process Certification

The Kimberley Process Certification Scheme (KPCS) is an international agreement established in 2003 to prevent the trade in "conflict diamonds". Rough diamonds used to finance wars against governments. India is a founding participant and one of the largest players in the KP, given its dominant position in diamond processing.

When Is a KP Certificate Required?

A Kimberley Process certificate is mandatory for every international shipment of rough diamonds. This applies to HS codes 7102.10 (unsorted diamonds) and 7102.31 (non-industrial rough diamonds). Cut and polished diamonds (7102.39) are exempt from KP certification requirements.

India's KP Process

• · Designated authority: The Gem & Jewellery Export Promotion Council (GJEPC) issues KP certificates on behalf of the Government of India.
• · Import of rough diamonds: Every incoming parcel of rough diamonds must be accompanied by a valid KP certificate from the exporting country. Indian customs verifies the certificate before granting clearance.
• · Re-export of rough diamonds: If rough diamonds are imported for sorting and re-exported without cutting, a fresh KP certificate from GJEPC is required for the outbound shipment.
• · Sealed tamper-proof containers: Rough diamond shipments must travel in tamper-resistant containers with the KP certificate attached. Any sign of tampering invalidates the certificate.

Hallmarking Requirements

Hallmarking is a purity certification system that guarantees the fineness (purity) of precious metal in jewellery articles. In India, the Bureau of Indian Standards (BIS) operates the hallmarking system under the BIS Act 2016 and the Hallmarking of Gold Jewellery and Gold Artefacts Order.

BIS Hallmark for Gold

Mandatory BIS hallmarking applies to gold jewellery and gold artefacts sold domestically in India. The hallmark consists of a BIS logo, purity grade, Hallmarking Centre identification number, and a unique HUID (Hallmark Unique Identification Number) for each piece.

International Hallmarking Conventions

India is a member of the Vienna Convention on Hallmarking (International Hallmarking Convention). Many destination markets have their own hallmarking requirements. The UK requires assay office hallmarks; the UAE mandates Dubai Municipality hallmarks for gold jewellery sold retail; and several EU member states have national hallmarking systems. Exporters must verify the specific hallmarking requirements of each destination market and ensure compliance before shipment.

Responsible Jewellery Council (RJC)

The Responsible Jewellery Council is a not-for-profit standards-setting organisation that establishes responsible business practices across the jewellery supply chain. From mine to retail. While RJC certification is not legally mandated by any government, it is increasingly becoming a commercial necessity for Indian exporters selling to major international brands and retailers.

RJC Code of Practices (COP)

The COP is the baseline RJC standard covering business ethics, human rights, labour rights, health and safety, environmental impact, product disclosure, and responsible sourcing. All RJC members must be audited against the COP within two years of joining and maintain certification through regular audits.

Chain of Custody (CoC) Certification

The CoC standard goes further, enabling companies to make claims about the provenance of precious metals and diamonds. It traces materials from source to final product, documenting every transfer point. CoC certification is especially important for exporters supplying to brands with strong sustainability commitments like Tiffany, Cartier, Pandora, and Signet Jewelers.

Key Markets & Duty Structures

India's gems and jewellery exports are concentrated in five major markets. Understanding the duty structure in each destination is critical for pricing and competitiveness. Use the FTA Calculator to check exact rates for your product and destination.

Gold Import & Export Schemes

Gold is the primary raw material for India's jewellery export sector, but its import is heavily regulated. India imports approximately 700-800 tonnes of gold annually, and the government uses import policy to balance the current account deficit with the needs of the export sector.

Nominated Agency Scheme

Gold can be imported into India only through nominated banks and agencies designated by RBI and DGFT. Nominated banks include State Bank of India, Bank of India, Bank of Baroda, Canara Bank, and several others. Nominated agencies include MMTC, STC, and PEC. These entities import gold on behalf of jewellers and exporters, either for outright sale or on a gold-on-loan basis.

Gold on Loan for Exporters

Exporters can obtain gold on loan from nominated banks at internationally competitive rates (typically SOFR/LIBOR plus a margin). The gold is provided on a duty-deferred basis. No customs duty is payable upfront. The exporter manufactures jewellery, exports it, and repays the gold loan upon receiving export proceeds. If the export obligation is fulfilled within the stipulated period (typically 90-180 days), no duty liability arises on the gold consumed in exports.

Star/Premier Trading House Entitlement

Exporters with Star Export House, Trading House, Star Trading House, Premier Trading House, or Star Premier Trading House status (based on cumulative export performance) receive enhanced gold import entitlements. A Star Trading House, for example, can import gold directly under specific DGFT authorisation, bypassing the standard nominated agency route for a portion of its requirements. These status holders also get priority allocation during periods of gold import restrictions.

FTA Benefits for Gems & Jewellery

India has several Free Trade Agreements and Preferential Trade Agreements that offer reduced or zero duties on gems and jewellery exports. Using these FTAs effectively can provide a significant price advantage over competitors from non-preferential countries.

Export Incentives

Indian gems and jewellery exporters can access several government schemes to offset costs and improve competitiveness. The key incentives are:

RoDTEP (Remission of Duties and Taxes on Exported Products)

RoDTEP reimburses embedded central, state, and local duties and taxes that are not refunded under any other scheme. For gems and jewellery, RoDTEP rates range from 0.5% to 1.5% of FOB value, depending on the specific 8-digit HS code. RoDTEP scrips are auto-credited to your ICEGATE ledger and can be used to pay customs duties on imports or transferred to other importers.

Duty Drawback on Gold Content

Exporters who import gold by paying full customs duty (rather than using the gold-on-loan or Advance Authorisation route) can claim Duty Drawback on the customs duty paid on the gold content of exported jewellery. The All Industry Rate (AIR) for duty drawback is specified in the Drawback Schedule. Exporters with higher actual duty incidence can apply for Brand Rate drawback by filing with the Drawback Directorate.

Advance Authorisation for Gold

The Advance Authorisation scheme allows duty-free import of gold, silver, platinum, and gemstones against a specific export obligation. The authorisation specifies the quantity of inputs that can be imported duty-free and the corresponding export obligation (typically 6x to 8x the CIF value of inputs imported). The export obligation must be fulfilled within 18 months (extendable to 24 months).

Interest Equalisation Scheme

The government provides an interest subvention of 3% on pre and post-shipment rupee export credit for MSME exporters, and 2% for other exporters in identified sectors. Gems and jewellery is a covered sector. The benefit is available on loans up to INR 25 crore per annum and reduces the effective borrowing cost for working capital.

GJEPC Membership

The Gem & Jewellery Export Promotion Council (GJEPC) is the apex body set up by the Ministry of Commerce & Industry to promote gems and jewellery exports from India. GJEPC membership is essential for any serious gems and jewellery exporter. It unlocks sector-specific benefits that are not available through any other channel.

Registration Requirements

• · Valid IEC (Importer Exporter Code) from DGFT
• · GST registration certificate
• · Bank certificate confirming the applicant's account
• · Company incorporation documents (MoA, AoA, Certificate of Incorporation)
• · PAN card of the entity and directors
• · Membership fee: INR 11,800 (manufacturers, 2 years) or INR 23,600 (exporters, 2 years)

Key Benefits

• · Kimberley Process certificates. GJEPC is the sole designated authority for issuing KP certificates in India
• · Certificate of Origin. GJEPC issues Certificates of Origin for FTA claims, including India-UAE CEPA
• · Exhibition access. Priority participation in IIJS (India International Jewellery Show), IIJS Signature, and international shows like JCK Las Vegas, Baselworld, and Vicenzaoro
• · Buyer-seller meets. Access to GJEPC-organised buyer-seller meets with international buyers across major markets
• · Training and skill development. Access to IIGJ (Indian Institute of Gems and Jewellery) training programmes
• · Gold import facilitation. GJEPC can recommend members for gold-on-loan facilities and Advance Authorisation processing

SEZ & EOU Benefits for Gems & Jewellery

Special Economic Zones (SEZs) and Export Oriented Units (EOUs) offer significant advantages for gems and jewellery exporters. India has dedicated gems and jewellery SEZs in Mumbai (SEEPZ), Jaipur, Surat, Hyderabad, and Noida. Several major jewellery exporters operate from these zones.

SEZ Benefits

• · Duty-free gold, silver, and gemstone imports without the need for Advance Authorisation. All imports into the SEZ are duty-free by default
• · GST exemption on procurement from domestic suppliers (treated as zero-rated supply)
• · Income tax deduction under Section 10AA. 100% deduction on export profits for the first five years, 50% for the next five years
• · Single-window clearance for approvals, customs, and regulatory compliance
• · Simplified customs procedures. Self-certification, periodic assessments, and reduced documentation

EOU Benefits

Export Oriented Units operate outside SEZs but enjoy similar customs duty exemptions on imports. EOUs can be set up anywhere in India and must achieve positive Net Foreign Exchange (NFE) within five years. For gems and jewellery, EOUs are particularly attractive for manufacturers who want duty-free gold and gemstone imports without relocating to an SEZ.

Compliance Checklist for Gems & Jewellery Exporters

Use this checklist to ensure your gems and jewellery export operations are fully compliant. Missing even one item can cause shipment delays, duty denials, or regulatory penalties.

• IEC registration. Valid Importer Exporter Code from DGFT
• GJEPC membership. Current membership with the Gem & Jewellery Export Promotion Council
• AD Code registration. Authorised Dealer code registered at the port of export
• GST registration. Active GST registration with LUT (Letter of Undertaking) filed for zero-rated export supplies
• Kimberley Process compliance. KP certificate obtained from GJEPC for every rough diamond shipment
• BIS hallmarking. Hallmark applied if required by destination market or buyer
• Certificate of Origin. Obtained from GJEPC or designated agency for FTA shipments
• Gold sourcing documentation. Nominated agency invoices, gold-on-loan agreements, or Advance Authorisation documentation
• Shipping bill filed correctly. Correct HS code, scheme code (drawback/AA/EPCG), and FTA declarations on ICEGATE
• Insurance. Transit insurance covering full consignment value (mandatory for high-value gems and jewellery shipments)
• Packaging and security. Tamper-proof packaging with seals for diamond and gemstone shipments
• Valuation documentation. Gemstone grading reports, diamond certificates (GIA, IGI, HRD), and gold assay reports
• EDPMS reporting. Shipping bill data matched against bank realisation in RBI's Export Data Processing and Monitoring System
• RoDTEP/Drawback claim. Correct scheme codes declared on shipping bill to ensure auto-credit of incentives
• RJC certification. Responsible Jewellery Council COP or CoC certification if supplying to international brands requiring it
• Anti-money laundering compliance. KYC of buyers, PMLA compliance, and reporting of suspicious transactions as required under the Prevention of Money Laundering Act

Frequently Asked Questions

Do I need a Kimberley Process certificate to export diamonds from India?

A Kimberley Process (KP) certificate is mandatory only for rough diamonds (HS 7102.10 and 7102.31). Cut and polished diamonds do not require a KP certificate. India is a KP participant, and GJEPC is the designated authority that issues KP certificates. Apply through GJEPC with the invoice, packing list, and details of the rough diamonds being exported.

What is the duty on Indian gold jewellery exports to the UAE?

Under the India-UAE CEPA, gold jewellery exports attract 0% duty, provided the Rules of Origin are met (minimum 3% value addition in India). You need a Certificate of Origin issued by GJEPC or FIEO. Without CEPA, UAE's MFN duty on gold jewellery is 5%.

How does the nominated agency scheme for gold imports work?

Gold can be imported only through RBI/DGFT-nominated banks and agencies (SBI, Bank of India, MMTC, etc.). Exporters obtain gold on loan at SOFR-linked rates, manufacture jewellery, export it, and repay the loan from export proceeds. No customs duty is payable if the export obligation is met within the stipulated period.

Is BIS hallmarking required for jewellery exports?

BIS hallmarking is mandatory for domestic sales of gold jewellery in India but not mandatory for exports. However, destination countries may have their own hallmarking requirements (UK assay office marks, UAE ESMA regulations). Many exporters voluntarily obtain BIS hallmarks as a quality signal.

What export incentives are available for gems and jewellery?

Key incentives include: RoDTEP at 0.5%-1.5% of FOB value; Duty Drawback on customs duty paid on imported gold and gemstones; Advance Authorisation for duty-free import of gold against export commitment; Interest Equalisation Scheme (3% for MSMEs, 2% for others); and preferential duty benefits under FTAs including India-UAE CEPA.

How do I become a member of GJEPC?

You need a valid IEC, GST registration, bank certificate, incorporation documents, and PAN card. Apply online at gjepc.org and pay the membership fee (INR 11,800 for manufacturers, INR 23,600 for exporters, both for two years). GJEPC membership unlocks KP certification, Certificate of Origin issuance, exhibition access (IIJS, Signature), and gold loan facilitation.

What are the key HS codes for gems and jewellery exports?

All products fall under HS Chapter 71. Key codes: 7102 (diamonds), 7103 (precious stones), 7104 (synthetic stones/lab-grown diamonds), 7106 (silver), 7108 (gold), 7110 (platinum), 7113 (finished jewellery), 7114 (goldsmith/silversmith articles), 7116 (pearl articles), and 7117 (imitation jewellery). The 8-digit ITC-HS code determines RoDTEP, drawback, and FTA eligibility.

Can I set up a gems and jewellery unit in an SEZ?

Yes. Gems and jewellery is one of the most active sectors in Indian SEZs. Benefits include duty-free import of gold, silver, and gemstones without Advance Authorisation; GST exemption on domestic procurement; income tax deduction under Section 10AA; and simplified customs procedures. Major gems SEZs operate at SEEPZ Mumbai, Jaipur, Surat, and Hyderabad. EOU is an alternative for manufacturers who do not want to relocate to an SEZ.

Update history

• 2026-08-12 First published.