The gems and jewellery exports increased by 12.32% to Rs 2.89 lakh cr during 2016-17, compared to the previous year.
Modi called upon the diamond industry in Surat to take a lead in making India emerge as number one in the gems and jewellery sector.
The All India GJF urged the government to levy 1.25% GST on the industry as against the proposed 4 per cent.
India's gold imports rose to USD 4.17 bn in March, which is expected to widen the current account deficit.
India's exports grew by 27.6% to USD 29.23 bn in March on account of robust performance by sectors like petroleum, textiles and engineering goods.
Gold of 99.9% and 99.5% purity held steady at Rs 29,300 and Rs 29,150 per 10 grams, respectively.
Standard gold (99.5 purity) rose by 90 per 10 grams to end at Rs 28,775 from Thursday's closing level of 28,685.
Exports of gems and jewellery grew 9.5 per cent to about USD 29 billion during April-January 2016-17, driven largely by demand in India's major markets like the US.
Standard gold (99.5 purity) eased by Rs 15 to end at Rs 28,745 per 10 grams from yesterday's level of Rs 28,760.
Standard gold (99.5 purity) declined by Rs 45 to finish at Rs 28,860 per 10 gram, from its overnight closing level of Rs 28,905 per 10 gram.