India's gem and jewellery exports rebounded sharply in June, with gross exports rising 26.51% year-on-year to $2.21 billion, according to the Gem and Jewellery Export Promotion Council (GJEPC). As reported by The Hindu BusinessLine, the strong monthly performance was driven by healthy demand for gold jewellery, cut and polished diamonds, platinum jewellery and lab-grown diamonds across major export markets. GJEPC Chairman Kirit Bhansali commented that the strong rebound reflects the resilience of India's gem and jewellery sector amid an evolving global trade environment. However, the industry faces significant headwinds with gems and jewellery exports falling 5% in dollar terms in FY26, marking the fourth consecutive year of decline. The slowdown has been particularly evident in the US market, whose share of India's gems and jewellery exports declined to 18% from 33% in FY25.
Among product categories, gold jewellery exports surged 54.50% year-on-year to $1.09 billion, while studded gold jewellery exports jumped 85.35% during June. According to the council, the rebound was aided by a 10.28% month-on-month decline in international gold prices, which reduced raw material costs and enabled Indian exporters to offer more competitive prices in overseas markets. Cut and polished diamond exports rose 8.71%, platinum jewellery exports increased 34.77%, and polished lab-grown diamond exports climbed 52.25% during the month. The diversified growth across multiple categories suggests improving demand across traditional as well as emerging jewellery segments in global markets.
The domestic gems and jewellery industry faces significant challenges with overall domestic demand declining 9% in FY26 due to elevated gold prices. According to Business Standard, investment demand increased 23% year-on-year, while jewellery demand declined 22%. The demand mix also shifted, with investment gold and gold jewellery accounting for 41% and 59% of demand respectively in FY26, against 31% and 69% in FY25. However, higher prices drove value growth of 42%. Despite these challenges, the gem and jewellery industry contributes 7-9% to India's merchandise exports, with micro, small and medium enterprises (MSMEs) accounting for nearly 75% of the industry by value. The upcoming festival and wedding season in the latter half of the calendar year is expected to support domestic jewellery demand, offering some relief in an otherwise challenging operating environment.
The recovery was further supported by improved price competitiveness, stronger demand and participation by Indian exporters in jewellery exhibitions in Kuwait and Sharjah. According to the council, the availability of gold for exporters continues to be affected by a technical regulatory issue relating to GST applicability on imports by RBI-notified nominated agencies. However, industry leaders expect recently signed trade agreements, including the India-UK Comprehensive Economic and Trade Agreement (CETA), to improve India's export competitiveness. Earlier this month, India shipped its first jewellery consignments to the UK under the trade pact, providing exporters with zero-duty market access. The gem and jewellery industry is one of India's largest foreign exchange earners and supports millions of jobs across manufacturing, polishing, design, and exports.
