The Free Trade Agreement (FTA) signed between India and New Zealand on Monday is being seen as an opportunity for the gems and jewellery business in Surat, which has been hit hard by three wars in succession since 2022, affecting supply chains of rough diamonds, and the latest West Asia conflict negatively impacting the market demand.
Gem & Jewellery Export Promotion Council (GJEPC), an autonomous body under the Union Ministry of Commerce with over 10,900 members across India, welcomed the FTA terming it “a timely strategic step that opens a high-potential market for Indian Gem and Jewellery exporters”.
The industry experts believe there will be a USD 50 million growth in exports over the next three years on account of the deal. India’s gems and jewellery export to New Zealand in 2024-25 was worth Rs. 110.37 crores, which rose to Rs. 213.09 crores in 2025-26, a growth of 93.07 per cent as per the data of the GJEPC.
Containing the blow from US
Executive Director of the GJEPC Sabyasachi Ray said that with the market for gems and jewellery in the US and the Gulf falling by 65 %, “it is better for India to identify individual markets and explore them”. “With the FTA, we are able to tap newer markets,” he said.
Nearly 30% of the gems and jewellery exports from India were to the US, which fell by over 60% with the imposition of the tariffs by the US last year.
According to Ray, businessmen wanted to capture the market among the Indian diaspora, which is around four lakh people in New Zealand.
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“We were concerned about the Indian diaspora community, and around 2 lakh people from South Asian countries like Pakistan, Bangladesh, Sri Lanka – making it to a total of over 6 lakh people. These people are purchasing a similar kind of Indian made jewellery (diamond-studded and non-studded) which was being sent through Dubai to New Zealand and Australia,” he said.
Now with the market in Dubai also hitting due the West Asia conflict, the businessmen can approach these new markets directly.
India’s current gem and jewellery exports to New Zealand stand at approximately USD 16.61 million.
Following the imposition of tariffs by the US as high as 50% on gems and jewellery before they were scaled down to 18%, India had begun exploring newer markets. Earlier this year, India had signed an FTA with the European Union.
Managing market monopoly
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National Chairman of GJEPC Kirit Bhansali, said, “In today’s turbulent global environment, India’s continued progress in advancing and concluding FTAs is enabling the industry to strategically diversify its export markets and reduce overdependence on any single country such as US or regions like the GCC”.
“New Zealand, with its high per capita jewellery consumption, presents new opportunities for Indian exporters. The agreement also provides a clear duty advantage over key competitors such as China and Thailand, enhancing competitiveness and enabling expansion of market share. Along with Australia and Fiji, New Zealand in Oceania presents a compelling avenue for diversification,” Bhansali explained.
“Importantly, this FTA is not just an export opportunity, but also a platform for deeper economic engagement and investment, supporting a more balanced and resilient growth trajectory for the sector,” adds Bhansali.
Advantage over China, Thailand
The agreement, experts said, offers a clear duty advantage over competitors such as China and Thailand, which is expected to strengthen India’s competitiveness and improve market share across gold, silver, platinum, studded, contemporary, couture, and fashion jewellery segments.
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Improved market access, combined with India’s strength in manufacturing diverse jewellery categories, is expected to generate employment opportunities across major jewellery-producing centres, including Gujarat, Maharashtra, Rajasthan, and West Bengal.
Surat Diamond Association president Jagdish Khut said, “Due to the war between Iran and Israel-US, the exports had gone down. The LGD (Lab Grown Diamonds) are supporting the natural diamond industry for survival. Once the war ends, the industry of natural diamonds will get its momentum. As the USA is a major importer of polished diamonds from India, we are also exploring other countries where we can find the market and export natural diamonds. There is no question of LGD in the market. We are hopeful that FTA with New Zealand will be a better scope for finding a better alternative or base to expand business to other countries.”
