India's Gem and Jewellery Exports Experience 3.32% Decline Amid Global Challenges
India's gem and jewellery export sector recorded a value of $27.72 billion (approximately Rs 2.44 lakh crore) during the fiscal year 2025-26, representing a 3.32% decline compared to previous periods. This performance occurred against a backdrop of significant global economic headwinds, including geopolitical uncertainties, evolving tariff regimes in key markets like the United States, and emerging tensions in West Asia.
Structural Transformation Underway in Export Landscape
According to the Gem and Jewellery Export Promotion Council (GJEPC), this period marks a structural reset for the Indian industry. Kirit Bhansali, Chairman of GJEPC, emphasized that growth is becoming more broad-based and less dependent on single markets. "Exporters have actively diversified into new geographies, strengthened value-added segments, and adapted swiftly to evolving global trade dynamics," Bhansali stated.
Detailed Breakdown of Export Performance
The export figures reveal significant variations across different product categories:
- Cut and Polished Diamonds: Accounting for 43.9% of total exports, this segment fell 8.52% year-on-year to $12.16 billion.
- Gold Jewellery: Overall gold jewellery exports remained largely stable at $11.36 billion, but with notable internal shifts:
- Plain gold jewellery declined 7.42% due to elevated gold prices
- Studded gold jewellery rose 6.27%, indicating a tilt toward design-led, higher-value products
- Silver Jewellery: This category surged 52.21% to $1.47 billion, driven by affordability and rising global demand.
- Platinum Jewellery: Shipments grew 39.32% to $254.6 million, indicating increasing traction in premium segments.
- Polished Lab-Grown Diamonds: Exports declined 10.55% to $1.13 billion amid price corrections, though studded jewellery using lab-grown diamonds rose sharply by 31.3%.
Geographic Diversification and Regional Contributions
Exports to newer markets demonstrated relative resilience, supported by free trade agreements. Shipments to the United Arab Emirates rose over 10% for the full year despite geopolitical disruptions. Other markets showing strength included Australia, Hong Kong, and Canada.
Regionally, Gujarat—a key hub for diamond processing—recorded exports worth $2.40 billion, underlining its continued contribution to the sector's global positioning. The state remains central to India's diamond processing and export ecosystem.
Industry Outlook and Consumer Trends
The data reveals evolving consumer preferences, with noticeable shifts toward:
- Design-led, higher-value products (evidenced by growth in studded jewellery)
- Affordable segments (shown by silver jewellery's remarkable growth)
- Premium categories (indicated by platinum jewellery increases)
- Alternative materials (demonstrated by lab-grown diamond usage in studded jewellery)
Despite the overall decline, the industry's strategic diversification and adaptation to changing global dynamics suggest a foundation for future resilience and growth in India's gem and jewellery export sector.
