Abstract The Gems and Jewellery sector plays an important role in the Indian economy. One of the fastest growing sectors, the Government of India has declared this sector as a focus area for export promotion. Nevertheless, Bullion and Jewellery sector leads to generation of black money in a larger way. The Government of India on the 8th November 2016 announced demonetization of Rs. 500 and Rs. 1,000 banknotes with effect from the same day’s midnight, making these notes invalid. This was initiated as a major step to check undeclared black money, Apart from combating black money, the other reasons stated is also to check fake currency (used to finance terrorism) and corruption. Hopefully, the nation looks it as revolutionary and positive change in the business markets. The impact of Demonetisation has led to various debates and concerns on time to time basis, some temporary and some permanent. In case of Jewellery sector, is is just on cash gold and could be temporary. However, the demonetization decision is a very bold step by the Prime Minister to take India towards legitimacy. The study is an attempt to understand the implications of demonetisation on local jewellers with special reference to Navi Mumbai. Keywords: Gems and Jewellery sector, Demonetization, Black Money.