India's gold import bill experienced a dramatic 47% increase to $11.01 billion in April-June 2026, with the UAE emerging as the primary driver of this surge. According to the Global Trade Research Initiative (GTRI), UAE gold imports more than doubled to $3.14 billion from $1.40 billion in the same period last year, while imports from the rest of the world declined 17.7% to $1.32 billion. The UAE's share of India's monthly gold imports consequently rose to 33% in June 2026 from 12.8% a year earlier, with GTRI noting that the UAE had become a "principal driver" of the increase in India's gold import bill. This surge occurred despite the government raising import duty on gold from 6% to 15% on May 13, highlighting the impact of preferential trade agreements.
India's jewellery stocks have experienced remarkable momentum over the past month, with Tribhovandas Bhimji Zaveri (TBZ) shares doubling to 101% following the announcement of GRT Jewellers' acquisition. Recent listings have also performed strongly, with Lalithaa Jewellers gaining 60% and PC Jewellers rising 40% over the same timeframe. Despite these gains, larger players like Titan and Kalyan Jewellers have underperformed their smaller peers, despite registering strong topline growth during the June quarter. Titan's jewellery business saw revenue growth of 39% year-on-year, while Kalyan Jewellers and Senco Gold achieved growth of 38% and 67% respectively. As per CNBC TV18, this outperformance is attributed to the focus on retail experience, transparent pricing, and design innovation, with daily wear jewellery gaining traction through lower gold weights and Lab Grown Diamonds.
The jewellery sector has witnessed significant market debut activity this year, with seven companies on the mainboard linked to this space making their debut on Dalal Street. Deepa Jewellers listed at a 25% premium to its issue price, while Lalithaa Jewellers has already risen over 50% from its issue price. Other recent listings including Augmont Enterprises, Shankesh Jewellers, PNGS Reva, Advit Jewels, and Priority Jewels have also made their market debuts. The surge in jewellery stock performance is particularly notable given that both the benchmark Nifty50 and broader markets have generated negative returns year-to-date as well as over the last six months.
Gold prices in India have experienced significant volatility, trending from a low of ₹1,21,467 in October last year to a record high of ₹1,67,965 last month, representing a 13% increase over the past month alone. According to Business Standard, this price oscillation has been attributed to weakening US dollar, US-Iran tensions, and lower US Treasury yields. The precious metal is now trading above the ₹1.53 lakh-per-10-gram mark on MCX, with 24K gold at ₹1,55,350 per 10 grams and 22K gold at ₹1,42,400 per 10 grams. As per CNBC TV18, gold prices in global markets have seen a rebound of over 20% from their 52-week low, with prices hovering around the $4,400 per ounce mark amid uncertainty over US Federal Reserve interest rate decisions. Market analysts believe ongoing US-Iran geopolitical tensions and lower US treasury yields are key contributors to the current price surge.
To offset higher gold costs, retailers are implementing strategic initiatives including attractive gold-exchange programmes accounting for 50% of gold sales, lightweight and lower-carat offerings, and affordable everyday-wear collections. As reported by Business Standard, retailers are recalibrating their offerings to include more 9-carat, 14-carat and 18-carat options to maintain affordability at high price points. The Akshaya Tritiya festival drove exceptional sales growth, while the period of Adhik Maas led to temporary postponement of wedding-related purchases. Despite these challenges, jewellery majors continue to expand their customer base and increase spend per customer through premiumisation, omnichannel expansion, and a higher studded mix. According to CNBC TV18, 60% of the Indian jewellery market remains unorganized, with even the largest player holding only an 8.5% market share, indicating significant growth opportunities ahead.
