India Shifts Jewellery Focus to Middle East Amid US Tariff Threat

Gems News: Indian Jewellery Sector Navigates a Shifting Global Trade Landscape

With tensions mounting over possible US-imposed tariffs on Indian goods—especially politically sensitive exports like jewellery, pharmaceuticals, and metals—the Indian gem and jewellery industry is urgently redirecting its focus toward more stable and receptive markets. Chief among these is the Middle East, a region rapidly emerging as a promising destination for Indian exporters grappling with uncertainty from the West.

India’s $32 billion jewellery industry, hit by US tariffs of up to 26%, is turning to the Middle East as a key alternative market.
Image Credit: StockShots

This Gems News report highlights a decisive shift by Indian industry leaders, particularly the Gem & Jewellery Export Promotion Council (GJEPC), which has rolled out a multi-tiered strategy to tap into the burgeoning demand in Saudi Arabia. With the strong backing of the Indian government, diplomatic missions in Riyadh and Jeddah, and support from the Dubai Jewellery Group, two successful curtain-raiser events recently introduced the Saudi Arabia Jewellery Exposition (SAJEX). These events, held in Jeddah and Riyadh, drew over 280 of the region’s key players, from leading wholesalers and retailers to major manufacturers.

SAJEX 2025 Signals Strategic Repositioning

The highlight of this strategic pivot is SAJEX 2025, a flagship jewellery expo slated for September 11 at the Jeddah Superdome. It’s expected to bring together over 200 exhibitors across 250 booths, representing a rich mix of countries including India, Saudi Arabia, the UAE, Turkey, Hong Kong, and Lebanon. More than 2,000 international buyers are anticipated to attend, viewing an extensive showcase of diamond and coloured gemstone jewellery, plain gold pieces, and cutting-edge manufacturing technology.

GJEPC, speaking on behalf of the industry, emphasized the significance of Saudi Arabia’s jewellery sector, valued at $4.56 billion in 2024 and projected to nearly double to $8.34 billion by 2030. With a youthful and style-conscious consumer base and a retail market in transformation, the Kingdom offers a unique opportunity for Indian jewellers to position their offerings as both luxurious and accessible.

Why Saudi Arabia Is the New Frontier

India’s exports to the US, worth $32 billion in the gems and jewellery sector alone, are increasingly under pressure due to the impending August 1 tariff deadline. Tariffs could climb to as high as 26%—among the highest levied on any major economy.

As global economic dynamics shift, countries like India are looking to reduce dependency on politically turbulent markets. Saudi Arabia, with its thriving retail ecosystem and hunger for design-forward jewellery in 18K and 21K gold and diamond settings, is now at the forefront of India’s global strategy.

SAJEX is not just a trade fair—it’s a symbol of deeper economic engagement between India and Saudi Arabia. At its heart lies the World Jewellery Investment Forum, co-hosted by the Saudi Ministry of Investment and GJEPC. The forum will bring together international manufacturers, government representatives, industry experts, and investors to explore the broader jewellery value chain—from supply to innovation hubs.

A Long-Term Vision for Growth and Resilience

Kirit Bhansali, chairman of GJEPC, stressed that SAJEX represents a major milestone in expanding India’s jewellery export footprint. “This event is not just about sales—it’s about forging long-term, sustainable partnerships. Saudi Arabia is not merely a target market but a strategic ally in shaping the future of the global jewellery trade.”

With Saudi Arabia’s rapidly growing appetite for luxury goods and India’s unmatched capabilities in design and manufacturing, the collaboration is poised to redefine regional jewellery trade flows. The success of SAJEX could mark the beginning of a powerful bilateral corridor, boosting economic ties and industry resilience in the face of geopolitical pressures elsewhere.

India’s strategic outreach to the Middle East isn’t a reactive measure—it’s a proactive blueprint for the future. If successfully executed, this pivot may not only shield the Indian jewellery sector from American tariff shocks but also anchor its global dominance more firmly in new, thriving markets.

As the countdown to the US tariff deadline continues, India’s bet on Saudi Arabia may prove to be one of the most transformative moves in the history of its jewellery trade. For the latest on the Middle-East jewelry market, keep on logging to Gems News.