2040 Roadmap for USD 100 Billion Gems & Jewellery Exports

What Happened

The Government of India convened a high-level dialogue titled 'Chintan Shivir – 2040 Roadmap for Gems & Jewellery'. During this event, Commerce Secretary Shri Rajesh Agrawal unveiled a comprehensive strategy to elevate India's gems and jewellery exports from the current USD 28 billion to USD 100 billion by 2040. The strategic focus shifted from basic manufacturing and mining towards innovation, global design leadership, brand building, and creating a robust domestic ecosystem for the "Crafted in India" proposition.

When & Where

The 'Chintan Shivir' took place on 19 August 2026. Organised in New Delhi/Mumbai, the event brought together senior government officials from various commerce and finance departments, alongside industry leaders representing the domestic and export markets of India.

Who Is Involved

• Department of Commerce: Nodal government body spearheading the export vision and facilitating structural changes.
• Gem & Jewellery Export Promotion Council (GJEPC): The primary industry body partnering with the government to organize the Chintan Shivir.
• Commerce Secretary (Shri Rajesh Agrawal): Highlighted the need for ecosystem building, moving to high-margin work, and human capital investment.
• Directorate General of Foreign Trade (DGFT): Shri Lav Agarwal emphasised positioning India as a global brand and led the mission on Global Market Access.
• Ministry of MSME and ECGC: Co-chaired missions to scale up the MSME base and integrate them into the global value chain.

How It Works

1. Transitioning to ODM: The sector will deliberately shift from low-margin Original Equipment Manufacturer (OEM) contracts to higher-value Original Design Manufacturing (ODM), where Indian enterprises create and own the designs.
2. Mission-Mode Execution: The roadmap is divided into specific priority missions such as Global Market Access, MSME Scale-Up, and Export-Import Fast Track. Each mission targets systemic bottlenecks like cross-border processes and access to finance.
3. Technological Integration: The industry will integrate Artificial Intelligence and 3D printing for product differentiation, speeding up the design-to-market cycle.
4. Branding and Trust Networks: The establishment of technology-driven transparent trust networks to respond to younger generations' preferences and market the "Crafted in India" brand globally.

Why It Matters

This event is highly relevant to UPSC GS Paper 3 (Indian Economy and Export Promotion). Economically, achieving USD 100 billion in exports will significantly narrow India's current account deficit. Socially, it promises to double sector employment to 1 crore, directly impacting artisan livelihoods and inclusive growth. It integrates India's rich cultural history into exportable soft power, making traditional craftsmanship aspirational and linking grassroots MSMEs to global markets.

Historical Background

• 1966: The Gem & Jewellery Export Promotion Council (GJEPC) was set up by the Ministry of Commerce to boost the country's export performance.
• 2004: The Foreign Trade Policy actively began recognizing the gems and jewellery sector as a thrust area for export promotion, given its high employment potential.
• 2018: The government released a comprehensive Gold Policy aimed at developing gold as an asset class and streamlining the heavily fragmented jewellery sector.

Previous Related Events

• 2022: The signing of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which provided zero-duty access for Indian jewellery to the UAE market, significantly boosting exports.
• 2023: Introduction of mandatory hallmarking across a large number of districts in India to ensure quality standardization and build consumer trust.
• 2024: The Union Budget focused on reducing import duties on certain critical raw materials like precious metals to make Indian exports more competitive globally.

Static GK Connection

• Foreign Trade Policy: Formulated under the Foreign Trade (Development and Regulation) Act, 1992, it provides the fundamental legal framework for promoting and regulating India's exports.
• Balance of Payments (BoP): Gems and jewellery constitute a major chunk of India's merchandise trade. Increasing these exports directly improves the Current Account balance, a core macroeconomic concept.

India & World Comparison

India is currently one of the world's largest exporters of gems and jewellery, holding a dominant position particularly in the cutting and polishing of rough diamonds (processing nearly 90% of the world's rough diamonds). However, in terms of branded, high-value finished jewellery, countries like Italy, Switzerland, and France capture the premium markets. The new roadmap aims to bridge this gap, moving India into the high-value branded segment.

Future Impact

• Target Deadlines: By 2040, the sector must achieve the USD 100 billion export mark, representing 14% of merchandise exports.
• Economic Value Expansion: The total economic value of the sector is mapped to reach nearly ₹60 lakh crore in the coming decade and a half.
• Emerging Sectors: There will be a massive policy push in Lab-Grown Diamonds (LGDs), modern refining ecosystems, and academic incubators to sustain this hyper-growth.

---

🔑 Key Points for Revision

• Event: 'Chintan Shivir – 2040 Roadmap for Gems & Jewellery' held in August 2026.
• Organisers: Department of Commerce and Gem & Jewellery Export Promotion Council (GJEPC).
• Core Target: USD 100 billion in sector exports by the year 2040.
• Baseline Data: Current exports stand at approximately USD 28 billion (2025-26).
• GDP Contribution: Sector expected to contribute 1.2% to India's GDP by 2040.
• Merchandise Share: Projected to account for 14% of India's total merchandise exports.
• Employment Goal: Double workforce from the current base to 1 crore jobs.
• Manufacturing Output: Planned to double to approximately ₹15 lakh crore.
• Value Chain Shift: Transformation from OEM (Original Equipment Manufacturer) to ODM (Original Design Manufacturing).
• Technology Focus: Extensive use of Artificial Intelligence (AI) and 3D printing in design.
• Key Campaigns: Promoting "Crafted in India" as a globally trusted and recognized brand.
• Mission 1 Focus: Global Market Access, chaired by DGFT.
• Mission 2 Focus: MSME Scale-Up, ensuring better finance and market access.
• Mission 3 Focus: Export-Import Fast Track to create simpler cross-border processes.
• Policy Alignment: Strategically aligned with the Prime Minister's vision of 'Viksit Bharat' by 2047.

---

🧠 Concept Link (Static GK Deep Dive)

Core Concept: Special Economic Zones (SEZs) & Export Promotion Councils (EPCs)

• Definition: Export Promotion Councils are registered non-profit organizations supported by the Government to promote and develop the exports of specific product groups from India.
• Constitutional / Legal Basis: Governed under the framework of the Foreign Trade (Development and Regulation) Act, 1992.
• Scientific / Economic Principle: Export-led growth theory, which suggests that opening up economies to global markets accelerates domestic growth and industrialization.
• How it connects to this event: GJEPC is the apex body driving the USD 100 billion roadmap in tandem with the government.
• Origin & History: The first EPCs in India were established in the 1950s to create specialized bodies for different commodities. GJEPC was established in 1966.
• Key milestone 1: Enactment of the SEZ Act 2005, which provided specific zones like SEEPZ (Santacruz Electronic Export Processing Zone) exclusively catering to gems and jewellery.
• Key milestone 2: The launch of the Make in India initiative in 2014, identifying gems and jewellery as a champion sector.
• Related Acts / Schemes / Treaties: Foreign Trade Policy 2023, SEZ Act 2005, and India-UAE CEPA.
• Nodal Ministry / Body: Ministry of Commerce and Industry (Department of Commerce).
• India-specific relevance: India has a massive unorganized artisan base; EPCs help formalize this sector, fetching foreign exchange and massive rural/semi-urban employment.
• Global comparison: Similar to China’s CCPIT (China Council for the Promotion of International Trade), which aggressively markets Chinese manufacturing abroad.
• Data point: Gems and jewellery currently constitute one of the top three export commodity groups for India.
• Common exam angle: UPSC frequently asks about the role of SEZs, the composition of India's export basket, and the nodal ministry for specific export councils.
• Easy memory hook: EPCs are the "Brand Ambassadors" of Indian products abroad.

---

❓ Practice MCQs

Q1. What is the target year set by the Chintan Shivir for achieving USD 100 billion in gems and jewellery exports? [Easy]

A) 2030

B) 2035

C) 2040

D) 2047

Answer: C

Explanation: The Chintan Shivir unveiled a visionary roadmap to take India's gems and jewellery exports to USD 100 billion by the year 2040.

---

Q2. Which organisation co-convened the 'Chintan Shivir – 2040 Roadmap' along with the Department of Commerce? [Easy]

A) Federation of Indian Chambers of Commerce & Industry (FICCI)

B) Gem & Jewellery Export Promotion Council (GJEPC)

C) Confederation of Indian Industry (CII)

D) NITI Aayog

Answer: B

Explanation: The Department of Commerce, in association with the Gem & Jewellery Export Promotion Council (GJEPC), convened the high-level dialogue.

---

Q3. Under the 2040 roadmap for the gems and jewellery sector, what is the projected employment target? [Moderate]

A) 50 lakh

B) 75 lakh

C) 1 crore

D) 2 crore

Answer: C

Explanation: The roadmap aims to double the current employment base in the sector, targeting 1 crore jobs.

---

Q4. The 2040 roadmap for the gems and jewellery sector projects that the industry will account for what percentage of India's total merchandise exports by 2040? [Moderate]

A) 8%

B) 10%

C) 14%

D) 20%

Answer: C

Explanation: The sector is projected to account for 14 per cent of the country's total merchandise exports by 2040.

---

Q5. According to the 2040 roadmap, what fundamental shift in manufacturing is envisioned for India's gems and jewellery sector? [Moderate]

A) From Original Design Manufacturing (ODM) to Original Equipment Manufacturer (OEM)

B) From retail trading to wholesale dumping

C) From Original Equipment Manufacturer (OEM) to Original Design Manufacturing (ODM)

D) From mechanized output to purely manual hand-crafted output

Answer: C

Explanation: The sector aspires to evolve from an OEM (Original Equipment Manufacturer) base into a global ODM (Original Design Manufacturing) and branding powerhouse.

---

Q6. Which specific advanced technologies were explicitly highlighted by the Commerce Secretary to achieve product differentiation in jewellery design? [Tricky]

A) Blockchain and Internet of Things (IoT)

B) Artificial Intelligence and 3D printing

C) Augmented Reality and Virtual Reality

D) Quantum Computing and Robotics

Answer: B

Explanation: The Commerce Secretary emphasised leveraging advanced technologies such as Artificial Intelligence and 3D printing to achieve product differentiation.

---

Q7. The 2040 roadmap envisions doubling the manufacturing output of the gems and jewellery sector to approximately what amount? [Tricky]

A) ₹10 lakh crore

B) ₹15 lakh crore

C) ₹25 lakh crore

D) ₹60 lakh crore

Answer: B

Explanation: The roadmap targets doubling the manufacturing output to approximately ₹15 lakh crore, while the overall economic value is expected to expand to nearly ₹60 lakh crore.

---

Q8. Mission 2 of the Chintan Shivir roadmap specifically focuses on scaling up which segment of the gems and jewellery industry? [Tricky]

A) Large Corporate Houses

B) Foreign Direct Investors (FDI)

C) Micro, Small and Medium Enterprises (MSMEs)

D) State-owned Enterprises (PSUs)

Answer: C

Explanation: Mission 2 focuses on "MSME Scale-Up" because MSMEs form the backbone of the industry and require better access to finance, technology, and markets.

---

📜 Previous Year Question Style (PYQ)

PYQ 1:

With reference to India's export targets, the recent 'Chintan Shivir' jointly organised by the Department of Commerce and GJEPC focuses on which specific sector to reach a USD 100 billion export mark by 2040?

A) Pharmaceuticals and Medical Devices

B) Information Technology Services

C) Gems & Jewellery

D) Textiles and Garments

Answer: C

Explanation: The dialogue specifically targeted the Gems & Jewellery sector, mapping out a roadmap from its current USD 28 billion baseline to USD 100 billion by 2040.

---

PYQ 2:

Consider the following statements regarding the 2040 Roadmap for Gems & Jewellery Exports:

1. It projects the sector's contribution to reach 5% of India's GDP by 2040.
2. It aims to transition the Indian sector from an Original Equipment Manufacturer (OEM) base to a global Original Design Manufacturing (ODM) powerhouse.
3. The roadmap targets doubling the sector's employment to 1 crore.

Which of the above statements is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2, and 3

Answer: B

Explanation: Statement 1 is incorrect because the projected GDP contribution by 2040 is 1.2%, not 5%. Statements 2 and 3 accurately reflect the goals outlined in the press release.

---

PYQ 3:

Assertion (A): The 2040 roadmap for the gems and jewellery sector emphasizes leveraging AI and 3D printing rather than solely focusing on mining precious metals.

Reason (R): India's core strength in this sector lies in its vast pool of skilled craftspeople rather than domestic availability of rough diamonds and gold.

A) Both (A) and (R) are true and (R) is the correct explanation of (A).

B) Both (A) and (R) are true but (R) is not the correct explanation of (A).

C) (A) is true but (R) is false.

D) (A) is false but (R) is true.

Answer: A

Explanation: The Commerce Secretary clearly stated that India's strength is not in mining gold or rough diamonds but in its skilled craftspeople, making design, innovation (AI/3D printing), and value addition the logical path to wealth creation.

---

✍️ Mains Answer Pointers

Question 1 (150 words): Analyze the significance of transitioning from Original Equipment Manufacturing (OEM) to Original Design Manufacturing (ODM) in the context of India's gems and jewellery sector.

The transition from Original Equipment Manufacturing (OEM) to Original Design Manufacturing (ODM) is a critical paradigm shift for India's gems and jewellery sector, directly addressing the limitations of low-margin contract manufacturing. Currently exporting approximately USD 28 billion, Indian manufacturers often execute designs owned by foreign brands, capturing only a fraction of the final retail value.

Moving to an ODM model allows Indian enterprises to conceptualize, design, and brand their own products. This integrates India's rich cultural history and storytelling into the final product, establishing a global "Crafted in India" brand. Economically, this value addition is vital to achieving the ambitious USD 100 billion export target by 2040. Furthermore, integrating technologies like Artificial Intelligence and 3D printing into the design process will differentiate Indian products in international markets. Going forward, robust academic-industry incubation partnerships will be essential to sustain this design leadership and ensure long-term wealth creation.

---

Question 2 (250 words): The 'Chintan Shivir – 2040 Roadmap for Gems & Jewellery' envisions a massive expansion of the sector's economic footprint. Discuss the multi-dimensional impact of this roadmap on the Indian economy and the structural reforms required to achieve its targets.

The recent 'Chintan Shivir' convened by the Department of Commerce and GJEPC marks a strategic inflection point for the Indian economy, unveiling a roadmap to escalate gems and jewellery exports from USD 28 billion to USD 100 billion by 2040. This sector is historically significant as a major foreign exchange earner, yet it has remained largely fragmented and dependent on imported raw materials like rough diamonds and gold.

The economic implications of this roadmap are profound. By aiming to contribute 1.2% to India's GDP and account for 14% of the country's merchandise exports by 2040, the sector will play a pivotal role in narrowing the current account deficit. Socially, the target to double employment to 1 crore workers will formalize rural and semi-urban artisanal jobs, directly supporting inclusive growth. The roadmap's projection to expand the overall economic value of the sector to nearly ₹60 lakh crore underscores its potential as an engine for the 'Viksit Bharat' vision.

However, realizing these targets requires sweeping structural reforms. The sector must pivot from being a low-margin Original Equipment Manufacturer (OEM) to a high-value Original Design Manufacturer (ODM). This necessitates aggressive integration of advanced technologies like AI and 3D printing. Furthermore, Mission 2 of the roadmap highlights the urgent need for MSME scale-up through better access to global markets and credit. Ultimately, establishing transparent, technology-driven trust networks and simplifying cross-border trade processes will be the decisive factors in positioning "Crafted in India" jewellery as a global premium brand.

---

⚠️ Examiner Trap

• Trap 1: Students often confuse the baseline export figure with the target figure. The correct fact is that the current baseline (2025-26) is approximately USD 28 billion, and the target for 2040 is USD 100 billion.
• Trap 2: A common wrong assumption is that India plans to aggressively increase domestic gold and diamond mining to meet this target. The reality is that the government explicitly stated India's strength is not in mining, but in its skilled craftspeople and value addition (design/innovation).
• Trap 3: Many students miss the distinction between OEM and ODM when answering questions on this topic. Always remember that the strategy focuses on moving away from OEM (contract manufacturing) towards ODM (owning the design and brand).

---

🧭 Exam Tip

• Prelims: Focus heavily on the specific target numbers (USD 100 billion, 1.2% GDP, 14% merchandise exports, 1 crore jobs) and the target year (2040). UPSC loves timeline-based factual questions.
• Mains: Use this topic as a prime case study in GS-3 (Economy/Employment) for how traditional, labour-intensive sectors can leverage modern technology (AI/3D printing) to move up the global value chain.
• Interview: Be prepared to discuss how "soft power" (culture, heritage) can be monetized into hard economic gains through branding ("Crafted in India").
• High-Probability Prediction: Expect a statement-based question comparing India's share in global rough diamond processing versus its share in branded retail jewellery, assessing the need for the OEM to ODM shift.