Key Export Highlights
- Cut and polished diamonds: -9.06%
- Total exports: US$4.27 billion
- Studded gold jewellery: +6.71%
- Plain gold jewellery: -40.11%
- Silver jewellery: +172.53%
- Platinum jewellery: +24.97%
- Lab-grown diamonds: +1.98%
India’s gem and jewellery exports stood at US$4.27 billion (₹40,398.97 crore) during April and May 2026, according to data released by the Gem & Jewellery Export Promotion Council (GJEPC). While exports declined by 6.03% in dollar terms compared to the same period last year, they recorded a growth of 3.99% in rupee terms.
The overall decline was largely attributed to a sharp fall in plain gold jewellery exports, which dropped 40.11% year-on-year to US$635.95 million from US$1.06 billion in the corresponding period of 2025. GJEPC stated that the segment continues to face challenges arising from elevated gold prices, limited availability of gold for export manufacturing and regulatory bottlenecks affecting gold supply through banking channels.
At the same time, studded gold jewellery exports delivered a positive performance, rising 6.71% to US$964.02 million during April-May 2026 compared to US$903.37 million a year earlier. According to GJEPC Chairman Kirit Bhansali, the growth reflects the benefits of India’s Free Trade Agreements (FTAs), which are improving market access and strengthening the competitiveness of Indian jewellery exports in key international markets.
Bhansali noted that concerns remain over the availability of gold for export manufacturing. GJEPC has taken up the issue with the Government and expressed hope for a positive resolution. The Council estimates that gold consumption for export production declined to around 11 tonnes during April-May 2026 from approximately 14 tonnes during the same period last year, indicating a reduction of more than 21%.
The industry body also highlighted the impact of rising gold prices on exporters. The average gold price during April-May 2026 increased to US$4,723.88 per troy ounce compared with US$3,242.48 per troy ounce during April-May 2025, representing a year-on-year increase of 45.69%.
According to GJEPC, exporters are additionally facing pressure from higher import costs following the increase in gold import duty from 6% to 15%. The Council pointed out that duty drawback rates have not been revised in line with the higher landed cost of gold, affecting exporter margins and overall competitiveness in global markets.
Among the major product categories, cut and polished diamond exports declined 9.06% to US$1.87 billion, while total gold jewellery exports fell 18.59% to US$1.60 billion during the period under review. Polished lab-grown diamond exports, however, recorded modest growth of 1.98% to US$194.78 million.
Silver jewellery emerged as the strongest-performing category, with exports surging 172.53% to US$365.77 million. Platinum jewellery exports also registered healthy growth, increasing 24.97% to US$41.22 million. Meanwhile, coloured gemstone exports declined 10.04% to US$55.93 million.
GJEPC welcomed the commencement of jewellery exports to Oman under the India-Oman CEPA, stating that the agreement is expected to create new opportunities for Indian exporters, particularly in the plain gold jewellery segment. The Council also expressed optimism regarding the proposed Bilateral Trade Agreement (BTA) between India and the United States as well as ongoing trade discussions with Canada, which are expected to support market diversification and expand export opportunities.
Commenting on the diamond sector, Bhansali said the industry continues to engage with the Government to improve India’s competitiveness in rough diamond trading. He noted that a significant share of global rough diamond trade is currently routed through hubs such as Belgium and the UAE, and that appropriate policy support could help India strengthen its position not only as the world’s leading diamond manufacturing centre but also as a major global diamond trading hub.
While challenges related to gold availability, rising prices and liquidity pressures continue to affect exporters, the performance of studded jewellery, silver jewellery and lab-grown diamonds indicates pockets of resilience within the sector. Industry stakeholders will now be closely watching policy measures aimed at improving gold supply and supporting export competitiveness in the months ahead.
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