Odisha is preparing to unveil a dedicated gems and jewellery policy, 2026 expected to be finalised within the next two to three months, according to reports from Business Standard. The state will become only the second after Maharashtra to formulate a sector-specific policy aimed at developing an integrated ecosystem for diamond and jewellery manufacturing. The policy will be accompanied by a Gems and Jewellery Park along the Khurda-Nayagarh road, with location and a land parcel of over 200 acres already identified. The move comes as Odisha has emerged as one of the country's fastest-growing destinations for lab-grown diamond (LGD) manufacturing, attracting approved investments of over ₹10,317.5 crore from four companies.
The approved projects include Kira Diam LLP with ₹7,000 crore investment, Anjali Labtech Ltd with ₹1,617.5 crore, Grow Magnificent Private Ltd with ₹1,200 crore, and AVP Star Private Ltd with ₹500 crore. Together, these projects are expected to generate around 8,600 direct jobs. Additionally, three more proposals are expected to be approved soon, taking the total proposed investment to nearly ₹18,917.5 crore with employment potential of over 16,000. The upcoming projects include Dholkia Lab Grown Diamond Pvt Ltd (₹4,500 crore), Neorganic Diamond Pvt Ltd (₹1,600 crore), and Green Lab Diamonds LLP (₹2,500 crore).
While Gujarat drives over 80% of diamond processing and 72% of the world's processed diamonds, Tamil Nadu supports the sector through export frameworks, as reported by Business Standard. The proposed policy aims to leverage LGD investments to build a complete gems and jewellery value chain, focusing on downstream industries that are highly labour-intensive and have potential to generate thousands of jobs for skilled and semi-skilled workers. These include diamond cutting and polishing, jewellery manufacturing, and gemstone processing, design and exports. The state has the potential to evolve into India's second major diamond hub, officials said.
Industry representatives have been demanding a dedicated gems and jewellery park equipped with common infrastructure, including Customs clearance facilities, diamond and gemstone testing and certification laboratories, offices of the gem and jewellery export promotion council, EXIM insurance services, logistics support, and other export facilitation infrastructure, according to Business Standard. The proposed policy is expected to introduce targeted incentives for jewellery makers, exporters, designers and ancillary industries while promoting skill development and export-oriented manufacturing. "Such common facilities are essential to attract large jewellery exporters and global brands to Odisha," one official said. Although the state's Industrial Resolution Policy (IRP), 2022 provides incentives for large units of diamond and gemstone manufacturing, there are no exclusive provisions for jewellery manufacturing, which is comparatively labour-intensive rather than capital-intensive.
Hemant Sharma, additional chief secretary of the industries department, confirmed that the government is preparing a lucrative policy for the gems and jewellery sector, stating it will be ready within the next two to three months, as reported by Business Standard. The government's investor roadshow in Gujarat received encouraging response with four memorandums of understanding (MoUs) in the LGD sector, besides several other investment intents. The allotment of 30 acres of land in favour of Gitanjali Gems for a jewellery manufacturing unit was also cancelled. The government now aims to leverage these investments to build a complete gems and jewellery value chain rather than limiting itself to diamond manufacturing. The initiative also marks a renewed attempt to establish a gems and jewellery hub in the state, following the shelving of the ₹636 crore Gitanjali Infratech project in 2018 after the ₹13,000 crore Punjab National Bank fraud involving Choksi and Nirav Modi came to light.
