Commenting on India’s 7.8% GDP growth in the first quarter of FY 2026, Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said the strong performance reflects the resilience of the economy and the policy direction under the leadership of Prime Minister Narendra Modi.
Despite global headwinds, including the recent 50% import tariff on diamonds imposed by the United States, Bhansali noted that robust domestic demand is cushioning the sector. “Rising domestic demand for gems and jewellery is creating a strong cushion. This demand will help to ward off some impact out of the 50% import tariff on diamonds that has been put up by the USA,” he said.
Highlighting India’s growing importance as a consumption-driven market, Bhansali pointed out that diamond jewellery sales in the country reached USD 8.5 billion — accounting for nearly 10% of global demand. With rising incomes, a young aspirational population, and investor confidence, he forecast India’s share of global diamond consumption could rise to as much as 30% in the coming years.
“This growth story reinforces India’s position not only as the world’s diamond manufacturing hub but also as one of the most promising consumer markets, offering immense opportunities for global trade and long-term investment,” Bhansali added.
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