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Scientific Essay from the year 2019 in the subject Economics - Foreign Trade Theory, Trade Policy, , language: English, abstract: In this work the author focuses on the prospects of gems and jewellery as a potential source of export earnings in India and the problems and constraints it may encounter.The assimilation of the Indian economy through the twin channels of trade and capital flows has been accelerated in the wake of globalization. Unrestricted international trade maximises the flow of goods and services, accumulates income, builds capital and supplies required inputs for industrialization among the participating countries. Moreover, such trade results in facilitating more diffusion of knowledge, enhances efficiency of inputs which transforms into manufactured outputs and consequently paves the way for economic development.