News
IGJS Jaipur 2025 bolsters global connections amidst mounting trade challenges
Against a backdrop of mounting trade challenges, India’s gem and jewellery exporters gathered in Jaipur for the International Gem & Jewellery Show (IGJS) 2025, an exclusive export-focused event organized by the Gem & Jewellery Export Promotion Council (GJEPC). Held from April 3 to 5, the show drew 50 of India’s leading exporters and more than 180 international buyers from 28 countries, reinforcing Jaipur’s status as a pivotal hub in the global jewellery trade.
The show, hosted at the Novotel Jaipur Exhibition and Convention Centre, spotlighted the city’s long-standing reputation for integrated craftsmanship — where stone-cutting and jewellery manufacturing coexist within the same business ecosystem. For many international buyers, this “one-stop-shop” model remains a key draw.
Still, the atmosphere wasn’t without tension. The recent imposition of U.S. tariffs — ranging between 26% and 27% on Indian jewellery exports — loomed large over business discussions. Exporters expressed concern over the long-term implications for price-sensitive markets like the United States, which has traditionally been a top destination for Indian jewellery.
“Tariffs were the biggest talking point on the floor,” said one Jaipur-based exporter. “We’re now discussing cost-sharing models with our U.S. partners, looking to absorb the blow across the supply chain — from exporters to retailers to end consumers.”
Repeat buyers remained a bright spot, with several exhibitors reporting continued interest and steady orders from long-standing clients. But many acknowledged a pressing need to attract larger retail chain buyers, particularly as global trade routes shift.
In response to the evolving trade landscape, exporters are eyeing alternative markets such as Dubai and Saudi Arabia, regions with strong demand and more favorable trade terms. Industry stakeholders also pointed to the India-Australia Economic Cooperation and Trade Agreement (ECTA) as a promising channel for diversifying export destinations.
Despite challenges, the sentiment remained broadly optimistic. The GJEPC announced plans to significantly scale the show in 2026, targeting over 500 global buyers and more than 150 exhibitors, a move intended to elevate the show’s global standing and deepen its influence in the international marketplace.
At its core, IGJS Jaipur 2025 underscored themes of resilience, adaptability, and strategic collaboration — with industry players focused on navigating shifting trade dynamics while continuing to showcase the strength of Indian craftsmanship.
National News
Correction In Gold Prices Prompts Margin Calls On Some Bullet‑Repayment Gold Loans
NBFCs, Have Started Shifting Toward EMI Based Gold Loan Products To Reduce LTV Vulnerability
A sharp correction in gold prices over recent months has prompted margin calls on some bullet‑repayment gold loans, while EMI (regular‑instalment) loans have stayed largely insulated; this dynamic and recent RBI rules (effective April 1, 2026) have pushed non‑bank lenders to migrate toward EMI‑based products to reduce future margin‑call risk.
Bullet loans keep principal outstanding until maturity, so a fall in gold’s market value raises the loan‑to‑value (LTV) ratio quickly and can trigger margin calls or demands for extra collateral; lenders have invoked margin calls in some cases as prices fell over five months.
EMI loans reduce outstanding principal every month, creating an equity cushion that buffers the borrower against modest price corrections and so have remained largely unaffected in the recent correction.
Market participants attribute the correction to geopolitical events and renewed concerns about interest‑rate trajectories, which reduced safe‑haven flows and weighed on prices.
Key elements of the new RBI gold‑loan framework (effective April 1, 2026)
- Tiered LTV caps: 85% for loans up to Rs 2.5 lakh, 80% for Rs 2.5–5 lakh, and 75% above Rs 5 lakh. This standardises collateral limits across lenders.
- Requirement that borrowers repay principal and interest within 12 months (ending the widespread practice of rolling by paying only interest) and stricter auction/valuation and borrower‑protection rules (30‑day average or previous‑day price for valuation, faster release of gold on closure, mandated disclosures, auction reserve pricing rules).
- LTV for bullet loans must be calculated on the total amount repayable at maturity, which makes bullet structures less attractive under the new framework.
Industry response and product shift
- Non‑bank lenders (NBFCs, smaller finance companies) have started shifting toward EMI‑based gold‑loan products to reduce LTV vulnerability and margin‑call exposure, and to align with RBI’s consumer‑protection and repayment‑discipline aims.
- Lenders say they can manage risks on short‑term loans and through active LTV monitoring, but the structural incentive now favours EMI schedules because they steadily reduce outstanding balances.
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