ENA Sectors 2026-04-21 16:24:30 <p><span style="font-size:14px"><strong>New Delhi, Apr 21 (KNN)</strong> Limited value addition due to a fragmented MSME base, heavy reliance on imported inputs and credit gap are among the issues weighing on the country's labour-intensive gems and jewellery sector, as per the latest edition of Trade Watch Quarterly released by government think-tank Niti Aayog.</span></p> <p><span style="font-size:14px">The report said that addressing these issues will require a strategic push towards higher value addition, diversification into emerging segments, better access to finance and raw materials, and investmentment in technology as well as skill.</span></p> <p><span style="font-size:14px">It also called for development of a more integrated and globally competitive ecosystem.</span></p> <p><span style="font-size:14px">As per the periodic publication, Indias export strength in the gems and jewellery sector remains concentrated in diamonds and precious metal jewellery, which together account for over half of global demand pegged at USD 207.3 billion. In these segments, India has achieved a strong global presence, with exports of USD 26.7 billion, with Surat in Gujarat emerging as the worlds largest cutting and polishing hub.</span></p> <p><span style="font-size:14px">The analysis highlighted that Indias trade structure in the sector is characterised by high product and market concentration. </span></p> <p><span style="font-size:14px"> Exports are largely directed towards a few key markets, notably the United States, UAE, and Hong Kong, while imports are concentrated in a limited number of suppliers for raw materials, the report said.</span></p> <p><span style="font-size:14px">As per the Trade Watch Quarterly, Indias trade performance in October-December period (Q3) of 2025-26 reflected a mixed but resilient trend, with merchandise exports registering modest growth of 1.6 Per cent while imports rose at a faster pace of 7.9 Per cent. In contrast, services exports grew strongly by 7.8 Per cent, with relatively moderate growth in services imports, resulting in a sustained surplus that continued to anchor the overall external balance.</span></p> <p><span style="font-size:14px">The publication which provides a comprehensive assessment of global and domestic trade trends was released by Suman Bery, Vice-Chairman, NITI Aayog.</span></p> <p><span style="font-size:14px">The thematic section of the publication focuses on Indias gems and jewellery sector. The section provides insightful information on Indias export profile, emerging segments such as lab-grown diamonds, and its positioning within global value chains. It has also detailed structural constraints, evolving demand patterns, and policy priorities required to strengthen competitiveness and enhance export performance.<br /> <br /> <em><strong>(KNN Bureau)</strong></em></span><br /> </p> 45871 https://knnindia.co.in/news/newsdetails/sectors/fragmented-msme-base-and-credit-gap-among-issues-weighing-on-gems-jewellery-sector-niti-report 2026-04-21 16:24:30 knnindia.co.in