Opportunities Emerging for India's Gems & Jewellery in the Middle East: GJEPC Report
Opportunities Emerging for India’s Gems & Jewellery in the Middle East: GJEPC Report
India’s Gems and Jewellery Export Promotion Council (GJEPC) has highlighted significant opportunities emerging for the Indian gems and jewellery sector in the Middle East, a region known for its thriving luxury market. With the Indian government pushing for increased exports and new partnerships, the Middle East presents a growing demand for high-quality, artisanal, and custom-designed jewellery.
Growing Demand in the Middle East
The Middle East has long been a key market for India’s gems and jewellery exports, especially with countries like the UAE and Saudi Arabia experiencing rapid economic growth, a rising affluent population, and an increased appetite for luxury goods. The demand for both traditional and contemporary jewellery styles has seen a notable rise.
According to the GJEPC, Middle Eastern consumers have shown a preference for Indian jewellery, which combines intricate craftsmanship with modern designs. India’s expertise in diamonds, gold, and handcrafted jewellery makes it a preferred supplier in the region.
Impact of Trade Agreements
The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has further facilitated easier trade relations between the two countries, particularly boosting gems and jewellery exports. The trade agreement has reduced tariffs and created a more favorable environment for Indian exporters. This has resulted in increased market access, helping India become a more competitive player in the Middle East’s luxury market.
India’s exports of gems and jewellery to the UAE alone were valued at $5.77 billion during FY 2022-23, indicating a steady growth trajectory. With the CEPA’s positive impact, this figure is expected to rise significantly in the coming years.
Expansion of Retail Presence
Leading Indian jewellery brands, such as Tanishq and Kalyan Jewellers, have been expanding their retail presence in key cities across the Middle East, particularly in Dubai and Abu Dhabi. These expansions cater to both expatriate Indian communities and local consumers, leveraging their deep understanding of the cultural tastes and preferences of the region.
Additionally, Indian jewellery brands are increasingly participating in international jewellery shows, such as the Dubai International Jewellery Week, positioning their products among high-end retailers and consumers.
Future Growth Prospects
GJEPC’s report emphasizes the need for continued collaboration between the Indian government, the jewellery industry, and Middle Eastern partners to sustain this growth. India’s gems and jewellery sector is poised to benefit from both its cultural heritage in jewellery-making and the technological advancements in design and manufacturing.
Increased digitization and e-commerce capabilities also offer an untapped market for Indian jewellers in the Middle East. With growing internet penetration and the rise of online shopping in the region, there is potential for expanding direct-to-consumer sales through digital platforms.