India's gems and jewellery exports declined 9.07% year-on-year to $2,226.45 million (₹20,825.01 crore) in April 2026, according to the Gem and Jewellery Export Promotion Council. The sector's gross exports were weighed down by weak global demand, volatile precious metal prices and cautious buyer sentiment amid ongoing geopolitical tensions. However, India's non-petroleum exports reached $33.97 billion in April 2026, recording a healthy growth of 9.01% over April 2025, as reported by DD India. This broader export performance highlights the strength of India's diversified export basket and expanding global demand for Indian manufacturing and value-added products. Imports also declined 10% to $2.03 billion, reflecting the broader subdued trade performance across the industry.
Despite challenges in traditional markets, India's goods exports surged 13.8% to $43.56 billion in April 2026, marking the first month of FY27, according to Business Standard. The growth was driven by strong performance in smaller markets, with exports to Sri Lanka rising 214.7%, Singapore up 179.2%, Tanzania increasing 157.6%, and Hong Kong growing 90.6%. Other significant gains included Bangladesh (64.2%), Australia (55%) and Malaysia (59.7%). This shift towards newer destinations reflects India's market diversification strategy, formulated amid growing uncertainty in global trade and concerns over steep US tariffs on Indian goods. Singapore overtook the UAE to become India's second-largest export destination, with its share in India's export basket rising to 7% from 3% a year ago, while China and Bangladesh also overtook the Netherlands to become the third- and fourth-largest export destinations, respectively.
Exports of cut and polished diamonds dropped 19.65% year-on-year to $890.91 million in April, down from $1,108.74 million in the previous year, as reported by Business Standard. The decline was linked to sluggish global demand, cautious retailer purchases and ongoing inventory adjustments in major export destinations. In terms of carats, exports of cut & polished diamonds decreased to 1.54% for April 2026 on a year-on-year basis. However, imports of rough diamonds also fell sharply, declining 29% to $848 million (₹1.21 billion), reflecting lower manufacturing activity and muted international demand. The imports experienced strong growth of 260.20% to $222 million due to replenished stocks, expectation of recovery in global demand and increased procurement activities from SEZs. Lab-grown diamonds also faced challenges, with exports decreasing 15.53% to $93.28 million (₹110.43 million) due to lower global demand for retail products, pricing adjustment and increased competition in international markets.
Gold jewellery exports recorded a steeper decline, falling 21.77% to $841.54 million in April 2026, compared to $1,075.67 million for the same period last year, as reported by Business Standard. High gold prices and reduced affordability in overseas markets affected bulk orders and consumer demand. The total export of plain gold jewellery worth $341.08 million in April 2026 showed a decline of 47.06% against $644.33 for the same period of the previous year. Colin Shah, MD of Kama Jewelry, noted that gems and jewellery exports were under pressure due to persistent global economic headwinds and volatility in precious metal prices. He added that traditional export segments such as cut and polished diamonds and plain gold jewellery remained under pressure due to cautious consumer sentiment and high bullion prices. However, studded gold jewellery exports rose 16.02% to $500.46 million, supported by growing demand for premium and fashion jewellery products in international markets.
India's trade relationship with West Asia faced severe disruptions in April, with both exports and imports declining by over 28% for the second consecutive month. Commerce Secretary Rajesh Agrawal reported that India's merchandise exports to the West Asian region fell 28% to $4.16 billion in April, while imports dropped 31.64% to $10.47 billion. The unrest linked to the US-Iran situation has severely disrupted shipping operations, with restrictions on movement through the key Strait of Hormuz waterway affecting vital trade channels. India normally exports goods worth about $6 billion every month to the region, with the main sectors including gems and jewellery, engineering goods, electronic items, petroleum products and rice experiencing significant declines. The conflict has particularly impacted India's exports to the UAE and Saudi Arabia, which contracted by 36.39% and 2.89% respectively, while imports from the UAE dropped 34.63%. However, from Saudi Arabia, imports grew 30.29% to $3.84 billion, and from Oman, they jumped 246.42% to $1.48 billion.
New global trade reports highlight that technological capability and regulatory compliance - not just tariffs - are becoming the key drivers of trade competitiveness. The Hamilton Index reveals that China now accounts for almost a quarter of global output in advanced industries and leads in seven of the 10 sectors covered. UNCTAD reports that non-tariff measures (NTMs) now impose greater trade costs than tariffs in 88% of countries, including technical regulations, testing requirements, certification standards and health measures. Developing countries struggle with increasingly complex regulatory requirements, with least developed countries losing 10% of potential exports because they cannot satisfy NTM requirements. India faces these challenges as merchandise export growth has been sluggish for several years, with exporters routinely confronting requirements linked to sustainability, carbon footprints, ESG reporting and supply-chain disclosures. UNCTAD estimates that improving transparency alone could reduce NTM-related trade costs by 19%, while regulatory convergence could reduce such costs by 15-30%.
Industry participants attributed the subdued trade performance to economic uncertainty in key global markets, fluctuating bullion prices and inventory corrections by overseas buyers. GJEPC Chairman Kirit Bhansali told PTI that the decline in exports is mainly due to the ongoing conflict in West Asia, which has caused worldwide disruptions affecting exports. He added that exports to the US, a major export market for the gems and jewellery industry, were also affected because there is still no clarity on the tariffs. The government has rolled out measures to cushion exporters from the impact of the Gulf region conflict, recognizing that key export sectors including gems and jewellery, rice and pharma were valued at about $57 billion in 2024-25. While there is no predictable sign of immediate recovery, industry leaders remain hopeful for a possible truce between the countries at conflict as it is critical to bring stability in commodity prices and restore international demand. The government should focus on building technological capability and efficient compliance capability to address these emerging trade challenges.
