India’s Gem & Jewellery Exports Stood at US$ 4.27 Billion in April–May

Mumbai, 15 June: India’s gem and jewellery exports stood at US$ 4.27 billion (Rs. 40,398.97 crore) during April–May 2026 as compared to US$ 4.55 billion (Rs. 38,848.42 crore) during the corresponding period of the previous year. While overall exports declined by 6.03% in dollar terms, they registered a growth of 3.99% in rupee terms.

The decline was primarily driven by a sharp contraction in Plain Gold Jewellery exports, which fell 40.11% year-on-year to US$ 635.95 million from US$ 1.06 billion in the corresponding period last year. The sector has been facing challenges arising from elevated gold prices, limited availability of gold for export production and regulatory bottlenecks affecting the supply of gold through banking channels.

However, the main concern remains Plain Gold Jewellery exports, which declined sharply by 40.11% year-on-year to US$ 635.95 million during April–May 2026 from US$ 1.06 billion in the corresponding period last year. One of the key reasons for this decline has been the tightening in gold imports, which has affected the availability of gold for export manufacturing. We have taken up this matter with the Government and are hopeful of a positive resolution.

Product-wise performance during April–May 2026:

• Cut & Polished Diamonds exports declined 9.06% to US$ 1.87 billion (Rs. 17,717.34 crore, up 0.82% in rupee terms) from US$ 2.06 billion (Rs. 17,573.36 crore).
• Total Gold Jewellery (Plain & Studded) exports declined 18.59% to US$ 1.60 billion (Rs. 15,112.92 crore, down 9.98% in rupee terms) from US$ 1.97 billion (Rs. 16,788.53 crore).
• Plain Gold Jewellery exports declined 40.11% to US$ 635.95 million (Rs. 6,005.95 crore, down 33.81% in rupee terms) from US$ 1.06 billion (Rs. 9,074.05 crore).
• Studded Gold Jewellery exports grew 6.71% to US$ 964.02 million (Rs. 9,106.97 crore, up 18.05% in rupee terms) from US$ 903.37 million (Rs. 7,714.47 crore).
• Polished Lab-Grown Diamonds exports grew 1.98% to US$ 194.78 million (Rs. 1,842.43 crore, up 12.96% in rupee terms) from US$ 190.99 million (Rs. 1,631.05 crore).
• Silver Jewellery exports surged 172.53% to US$ 365.77 million (Rs. 3,439.19 crore, up 199.91% in rupee terms) from US$ 134.21 million (Rs. 1,146.73 crore).
• Platinum Jewellery exports increased 24.97% to US$ 41.22 million (Rs. 389.16 crore, up 38.14% in rupee terms) from US$ 32.98 million (Rs. 281.70 crore).
• Coloured Gemstones exports declined 10.04% to US$ 55.93 million (Rs. 528.39 crore, down 0.35% in rupee terms) from US$ 62.17 million (Rs. 530.23 crore).

We have also noted with concern that gold availability from banks has been affected due to certain regulatory bottlenecks, creating additional challenges for exporters. These issues have been further compounded by a sharp rise in gold prices. The average gold price during April–May 2026 increased to US$ 4,723.88 per troy ounce from US$ 3,242.48 per troy ounce in April–May 2025, representing a year-on-year increase of 45.69%.

Further, the increase in gold import duty from 6% to 15% has significantly raised the landed cost of gold. While exporters continue to bear the burden of higher input costs, the Duty Drawback rates have not been revised accordingly, adversely affecting the competitiveness and margins of jewellery exporters.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

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