New Delhi, April 20 (NationPress) India's trade performance during the third quarter of FY26 exhibited a mixed yet resilient pattern, with merchandise exports increasing by 1.6% and imports escalating by 7.9%, as reported by NITI Aayog on Monday with the release of its 'Trade Watch Quarterly.'

Services exports experienced robust growth of 7.8%, while services imports grew at a more moderate pace, fostering a persistent surplus that has been instrumental in stabilizing the overall external balance.

Suman Bery, Vice‑Chairman of NITI Aayog, unveiled the latest edition of this publication for the period of October‑December 2025.

This quarter's thematic focus was on gems and jewellery, a vital segment of India's labour-intensive manufacturing sector. Excluding raw gold, the global market size was projected at $378 billion in 2024, with India's exports valued at $29.5 billion, making up 7.8% of worldwide exports, the statement indicated.

India's export prowess in this sector is primarily centered around diamonds and precious metal jewellery, which collectively represent over half of the global demand, estimated at around $207.3 billion.

In these categories, India has established a formidable global presence, with exports totaling $26.7 billion. This reflects its status as a global processing center, significantly enhanced by value addition from imported raw materials, with Surat recognized as the world's largest diamond cutting and polishing hub, according to the statement.

NITI Aayog pointed out several structural challenges, including limited value addition stemming from a fractured MSME base, dependency on imported materials, a credit gap due to a lack of confidence from financial institutions, skill and design deficiencies, and inadequate integration into global trading networks.

The think tank urged for a shift towards emerging sectors like lab-grown diamonds, improved access to financing and raw materials, technological investments, and the establishment of stronger policy frameworks to tackle these issues.

“In industries such as gems and jewellery, it is crucial to align with shifting global demands, enhance value addition, and mitigate structural obstacles to stay competitive,” stated Suman Bery.

The analysis revealed that India’s trade framework in this domain is characterized by high product and market concentration. Exports are predominantly channeled to a few key markets, particularly the United States, UAE, and Hong Kong, while imports are concentrated among a limited array of suppliers for raw materials.