World MSME Day: Gem & jewellery sector calls for MSME-led innovations amid global uncertainty

India’s $85 billion gem and jewellery sector has been grappling with multiple challenges in recent months. The West Asia crisis, rising raw material prices, and policy-related bottlenecks have negatively impacted exports, leading to a decline in overseas shipments.

The sector’s challenges are also evident in its performance. During April-May 2026, India’s gems and jewellery exports declined to $4.27 billion from $4.55 billion a year ago, according to Gem & Jewellery Export Promotion Council (GJEPC).

On the occasion of World MSME Day, The Economic Times Digital reached out to several experts to understand the opportunities and challenges for the sector, given the multitude of constraints at play.


Mira Gulati, Founder & Principal Designer, Mirari Fine Jewels, says that businesses continue to navigate challenges, such as rising gold prices, fluctuations in raw material costs, and the need to preserve traditional craftsmanship while adapting to changing consumer expectations. “MSMEs that remain innovative, customer-centric and committed to quality will be best positioned to thrive in the years ahead. Looking ahead to 2027, I see the Indian jewellery sector becoming increasingly design-led, globally relevant, and focused on responsible luxury,” she says.

Gulati believes aspects such as personalisation, sustainability, and emotional value will play an even greater role in purchase decisions, while bespoke services and heirloom redesigns will continue to gain momentum.

Affirming similar sentiments, Kirit Bhansali, Chairman of GJEPC, says that behind every piece of jewellery exported from India is an MSME—a family-run workshop, a skilled artisan, a young entrepreneur or a small manufacturer whose craftsmanship has been passed down through generations.

“With over 85% of our industry comprising MSMEs, they are the backbone of India’s gem and jewellery sector. Our endeavour has been to empower these enterprises by expanding their access to global markets, strengthening their capabilities and creating opportunities for growth,” he says.

Expressing hope on the proactive pursuit of trade agreements, Bhansali adds that such initiatives will play a vital role in market diversification, expanding export opportunities and strengthening the global competitiveness of India’s gem and jewellery sector in the times ahead.

Industry experts also highlight that the increased demand for transparency and trust by consumers is making way for better quality standards in the sector. “Today, we are seeing consumers become increasingly conscious about quality, authenticity, and trust, which creates significant opportunities for organised jewellery businesses. At the same time, challenges such as fluctuating gold prices, rising operational costs, and the need to retain and nurture skilled craftsmanship continue to shape the industry's growth journey,” Prerna Khurana, Director, Khurana Jewellery House, says.

However, she rationalises that the sector’s deep emotional, cultural, and investment value for Indian consumers makes it inherently resilient to the ongoing challenges. “As we look towards 2027, we expect the industry to become more design-led, technology-enabled, and customer-centric. The growing integration of digital channels into the customer journey also contributes to the positive outlook for the sector ahead,” Khurana says.

Talking about the challenges in the sector, Pawan Gupta, Chairperson of PP Jewellers, says that rising gold prices, increasing business costs, and changing market trends require companies to stay flexible and adapt quickly. “India’s MSME sector plays a very important role in the country’s growth by creating jobs, supporting local businesses and keeping traditional skills alive. We will continue to see growing demand for well-designed jewellery, greater use of technology and a stronger preference for trusted brands that offer transparency and value,” he says.