With trade with the US, India’s largest jewellery export market, destabilised due to President Donald Trump’s tough tariff policies, India is now seeking alternative markets. The government and exporters are increasingly looking towards Saudi Arabia, a rapidly growing market in Asia, to boost gem and jewellery exports. Saudi Arabia’s jewellery market is currently valued at $4.5 billion (approximately Rs 39,600 crore) and is projected to reach $8.3 billion (Rs 73,000 crore) by 2030.
Indian jewellery exporters see this as a significant opportunity to offset losses caused by the US tariffs. Last month, Trump imposed a 50% duty on jewellery imports from India. Prior to this, India exported jewellery worth an average of $10 billion (Rs 88,000 crore) annually to the US, accounting for nearly 30% of the country’s total gem and jewellery exports. The new tariffs have made exports to the US nearly impossible, prompting India to diversify its markets.
Saudi Arabia is emerging as a key alternative, with India’s jewellery exports to the kingdom rising sharply. According to the Gem and Jewellery Export Promotion Council (GJEPC), exports to Saudi Arabia increased by 45% to $151.5 million (Rs 1,300 crore) in 2024-25. Kirit Bhansali, chairman of GJEPC, said, “The jewellery market in Saudi Arabia is expanding at a remarkable pace, with estimates suggesting it will reach $8.34 billion by 2030. As the Gulf’s largest economy, with a GDP of $1.1 trillion, Saudi Arabia is fast emerging as a key player in the global luxury and retail landscape.”
Compared to the US, India’s other jewellery markets are relatively small. However, demand in Saudi Arabia has been rising steadily over the past few years. Reports indicate that Saudi youth are particularly enthusiastic about new trends in jewellery. Average annual spending on jewellery in the kingdom is around $320 (Rs 28,500), positioning Saudi Arabia at the forefront of global jewellery consumption.
India-Saudi trade relations have also strengthened in recent years. India is currently Saudi Arabia’s second-largest trading partner, with bilateral trade reaching a record $42 billion (Rs 3.7 lakh crore) in 2024-25. As the largest economy in the Gulf region, Saudi Arabia offers a promising alternative for Indian jewellery exporters seeking to mitigate the impact of US tariffs and tap into a rapidly expanding market. This strategic pivot highlights India’s proactive efforts to diversify its exports while seizing growth opportunities in emerging markets like Saudi Arabia.
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