---
title: "West Asia war could hit India's gems, jewellery exports by $1.2 bn: GJEPC"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279151739.md"
description: "Indian gems and jewellery exports have dropped by 20% due to geopolitical tensions in West Asia, with an expected impact of $1.2 billion over the next three months, according to the Gems and Jewellery Export Promotion Council (GJEPC). While some trade may shift to markets like China and Hong Kong, the overall impact could have reached $2 billion. Exports to the UAE and GCC total $8.3 billion, with Dubai emerging as a key trading hub. The sector is also affected by US tariffs and the India-UAE Comprehensive Economic Partnership Agreement (CEPA)."
datetime: "2026-03-15T02:30:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279151739.md)
  - [en](https://longbridge.com/en/news/279151739.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279151739.md)
---

# West Asia war could hit India's gems, jewellery exports by $1.2 bn: GJEPC

Indian gems and jewellery exports have already witnessed a 20 per cent drop due to the ongoing geopolitical conflict in West Asia, according to the Gems and Jewellery Export Promotion Council (GJEPC).

“This month at least 20 per cent of our overall exports have suffered due to the tensions in West Asia. If the situation prevails, we expect exports worth $1.2 billion to be impacted in the coming three months,” Sabyasachi Ray, executive director at GJEPC, told Business Standard.

The overall impact could have been close to $2 billion, but some of the trade can be replaced by markets such as China and Hong Kong, he explained.

“We had warded off the pressures of the US tariffs by diversifying to the United Arab Emirates (UAE). Almost 65 per cent of our overall exports go to Dubai, from where they travel to the Gulf Cooperation Council (GCC) nations. While the US tariff situation has eased off a little, the diversification we did to West Asia has now been eroded,” he added.

Exports to the UAE and the GCC amount to $8.3 billion in total. The UAE, and Dubai in particular, is a major sourcing hub for the sector, replacing Belgium as the rough and polished diamond trading centre. Additionally, gold imports of almost 200 tonnes to the country will also suffer due to the signing of the India–UAE Comprehensive Economic Partnership Agreement (CEPA).

According to the latest data released by the council, exports of Indian gems and jewellery in February this year rose 3.86 per cent year-on-year to $2.68 billion. However, from April 2025 to February this year, exports remained almost flat at $25.93 billion compared to $25.92 billion in the year-ago period.

This was largely due to the impact of US trade tariffs and geopolitical uncertainties worldwide.

Speaking about the evolving global trade environment, Ray said the range of Free Trade Agreements (FTAs) that India has been signing will benefit the sector.

“FTAs are of huge help and are a strategic alternative for countries like India, which are developing and growing very fast,” Ray said.

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