India’s gem and jewellery industry is facing significant disruption as the ongoing conflict in West Asia interrupts key trade routes and logistics networks linked to the global diamond supply chain.

Industry participants report that exports of jewellery and imports of rough diamonds have slowed or temporarily halted due to widespread flight cancellations and airspace restrictions across the region. Dubai, a major global hub for the trading of rough and polished diamonds as well as bullion, has seen multiple cargo and passenger flight suspensions, severely affecting the movement of goods between India and international markets.

The Middle East accounts for nearly a quarter of India’s annual gems and jewellery exports, which are valued at around $30 billion. The United Arab Emirates plays a particularly critical role in the supply chain, supplying more than two-thirds of India’s rough diamond imports. Disruptions in trade flows through the region are therefore expected to directly affect manufacturing centres such as Surat and Mumbai that depend on a steady supply of rough stones.

Industry executives say shipments have slowed significantly as buyers and sellers delay transactions amid uncertainty over logistics and market stability. With Dubai serving both as a major consumer market and a global trading hub, the suspension of cargo activity is likely to weigh on India’s export performance in the coming months.

The crisis comes at a time when the sector is already navigating subdued global demand and other geopolitical pressures. Prolonged instability in West Asia could further strain supply chains, raise freight costs and create additional uncertainty for exporters and manufacturers across India’s gem and jewellery industry.