The conflict in West Asia and the Russia-Ukraine war earlier had taken a heavy toll on Surat’s gems and jewellery business. Now, a fresh trade deal is offering the industry something it badly needs, a new market.
India signed a Free Trade Agreement with New Zealand on Monday, and for Surat’s diamond and jewellery traders, it’s a fresh lease of life.
The deal scraps export duties of up to five per cent on gold, silver, imitation jewellery, pearls, and precious and semi-precious stones. The duty on polished natural diamonds was already nil.
Industry experts estimate the FTA will generate USD 50 million in export growth over the next three years. India’s gems and jewellery exports to New Zealand were worth Rs 110.37 crore in 2024-25.
They jumped to Rs 213.09 crore in 2025-26, a growth of over 93 per cent, according to GJEPC data published by a section of the media.
The Gem and Jewellery Export Promotion Council, which has over 10,900 members across India, welcomed the deal.
It called it a timely strategic step that opens a high-potential market for Indian exporters.
The sector has been under sustained pressure. Nearly 30 per cent of India’s gems and jewellery exports once went to the US. That fell by over 60 per cent after American tariffs hit — as high as 50 per cent before being scaled down to 18 per cent. The Gulf market has simultaneously shrunk due to the West Asia conflict. Together, the US and Gulf markets have fallen by 65 per cent.
Experts believe it’s now better for India to identify and explore individual markets rather than depend on large ones. The general sentiment is that FTA would help tap newer markets directly.
They pointed to a specific opportunity. The Indian diaspora in New Zealand, estimated at around four lakh people.
South Asian communities from Pakistan, Bangladesh and Sri Lanka bring the total to over six lakh people. This population was already buying Indian-style diamond-studded and non-studded jewellery but it was reaching them through Dubai.
With Dubai also hit by the West Asia conflict, Indian businesses can now approach these markets directly.
India’s current gems and jewellery exports to New Zealand stand at approximately USD 16.61 million.
According to industry observers, the agreement reduces overdependence on any single country or region such as the US or the GCC. New Zealand had high per capita jewellery consumption and offered a clear duty advantage over competitors such as China and Thailand. Along with Australia and Fiji, New Zealand presented a compelling avenue for diversification across Oceania.
The agreement is expected to benefit multiple jewellery segments: gold, silver, platinum, studded, contemporary, couture and fashion jewellery. It’s also expected to generate employment across major producing centres including Gujarat, Maharashtra, Rajasthan and West Bengal.
Earlier this year, India had also signed an FTA with the European Union, as part of the broader push to diversify export destinations.
An official associated with Surat Diamond Association told a media house that exports had fallen due to the Iran-Israel-US conflict. He said lab-grown diamonds were currently helping the natural diamond industry stay afloat. He expressed hope that once the war ends, natural diamonds would regain momentum.
He added that the association was already exploring countries beyond the US for polished diamond exports, and that the New Zealand FTA could serve as a useful base to expand into newer markets.
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