India Jewelry Trade Rebalances

by R. Suryamurthy April 15, 2026

By R. Suryamurthy April 15, 2026 0 comments 2 minutes read

Representative Image.

India’s gem and jewelry exports stood at $27.72 billion (₹2.45 lakh crore) in the financial year 2025–26, marking a modest 0.93% rise in rupee terms but a 3.32% decline in dollar terms, according to data released by the Gem & Jewelry Export Promotion Council (GJEPC).

The performance, shaped by geopolitical tensions and shifting global trade dynamics, reflects what industry leaders describe as a “structural reset” — with exporters diversifying beyond traditional markets and focusing on value-added segments.

GJEPC Chairman Kirit Bhansali said the sector is becoming “less dependent on a single market,” with rising shipments to regions such as the UAE, Hong Kong, Australia and Canada offsetting weakness in the United States, where exports fell sharply due to tariff-related uncertainties.

The UAE retained its position as India’s top export destination, with shipments rising 10.52% to $8.70 billion, while Hong Kong recorded robust growth of nearly 31%. In contrast, exports to the US plunged 44.92%, highlighting the impact of policy changes and subdued discretionary demand.

Product-wise, cut and polished diamonds remained the largest export category, contributing 43.9% of total exports, though shipments declined 8.52% to $12.16 billion amid global inventory corrections and competition from alternative luxury segments.

Gold jewelry exports were largely flat at $11.36 billion, masking diverging trends within segments. While plain gold jewelry exports fell 7.42% due to high gold prices dampening demand, studded gold jewelry grew 6.27% to $6.52 billion, reflecting stronger appetite for design-led, value-added products.

Other categories saw sharp growth. Silver jewelry exports surged 52.21% to $1.47 billion, driven by affordability and rising global demand, while platinum jewelry shipments rose 39.32% to $254.6 million, signaling traction in premium niches.

Lab-grown diamond exports declined 10.55% to $1.13 billion due to price corrections, even as volumes increased. However, jewelry studded with lab-grown diamonds recorded strong growth of over 31%, indicating evolving consumer preferences.

Regionally, western India — led by Mumbai — continued to dominate exports, followed by Gujarat, a key diamond processing hub.

The council said free trade agreements with the UAE and Australia have supported diversification, and upcoming trade pacts with the UK and European Union could further strengthen export momentum in the coming year.