West Asia War Forces Strategic Reset in India’s $28.5B Gem & Jewellery Sector

The Fragile Glitter: The way the Jewellery Industry in India is being impacted by the West Asia War. The gem and jewellery sector of India is approaching a challenging situation in 2026. The industry contributes millions of employment and has a significant contribution to the economy of this country. However, the war in West Asia has caused sudden disruptions in trade, supply, and prices.

Indian jewellery is highly marketed in the Middle East. There is a high proportion of exports that is typically sold to the nations in this region. Dubai is also a significant trading centre in which rough diamonds and gold transit before they find their way to India or other market places. The movement of goods was interrupted as flights and shipping routes slowed down due to the conflict. To the jewellery producers in cities such as Surat and Mumbai, it translates to slow supply of raw materials as well as export.

The price of gold has also increased by a great margin since investors view the gold as a secure means of storing money in times of global tensions. In India, the price rose to record levels at the beginning of 2026. Jewellery is not affordable to a large number of customers due to its high prices. Due to this, customers are opting to wear light jewellery and light-carat gold rather than the heavy jewellery.

Despite all these, the industry is attempting to evolve. Companies are venturing into other markets of the United States, Europe and Southeast Asia. Most are also turning their attention to the contemporary designs and online sales. Today the sector is also straining, though it can adapt to it and remain robust over the years.