India’s studded gold jewellery exports have shown remarkable growth, more than doubling from $2.7 billion in FY 2020-21 to $6.1 billion in FY 2024-255. This robust expansion stands out against a backdrop of global economic headwinds and a broader decline in India’s overall gem and jewellery exports. The surge reflects shifting consumer preferences, strategic industry adaptation, and the competitive advantage of India’s integrated jewellery manufacturing ecosystem.

• Studded gold jewellery exports grew by 126% over five years, outpacing many other segments5.
• Plain gold jewellery exports also saw a significant 150% rise, indicating broad-based demand5.
• Despite an 11.7% decline in overall gem and jewellery exports in FY 2024-25, studded gold jewellery remained a growth driver35.

Drivers of Growth

1. Rising Gold Prices and Consumer Adaptation

• Skyrocketing gold prices have prompted consumers to shift towards jewellery with less gold content but enhanced visual appeal, such as pieces studded with natural or lab-grown diamonds (LGDs)5.
• Studded jewellery offers a cost-effective alternative, maintaining luxury appeal while managing material costs.

2. Local Manufacturing Ecosystem

• India’s ability to produce both natural and lab-grown diamonds domestically gives manufacturers a pricing edge and supply chain control5.
• The entire LGD process, from growth to setting, is handled in-house, ensuring quality and cost competitiveness.

3. Global Market Dynamics

• Exporters executed over $1 billion in shipments ahead of new US tariffs, showing agility in responding to international trade shifts3.
• While the US and China markets have been sluggish, demand for studded gold jewellery has remained resilient due to its adaptability and design innovation15.

4. Industry Innovation and Craftsmanship

• Indian manufacturers have leveraged design excellence and skilled craftsmanship to cater to evolving global tastes, enhancing the appeal of studded gold jewellery1.

Challenges

• Global Headwinds: The sector faces ongoing challenges from geopolitical tensions, trade sanctions, and competition from affordable lab-grown diamonds in other countries35.
• Decline in Other Segments: While studded gold jewellery exports are up, exports of silver jewellery and lab-grown diamonds have declined sharply, reflecting uneven performance across categories3.
• Tariff Uncertainties: New reciprocal tariffs in major markets like the US could affect future growth, requiring exporters to remain agile3.

Conclusion

India’s studded gold jewellery export boom is a testament to the sector’s ability to innovate and adapt in challenging times. By leveraging domestic strengths and responding quickly to global trends, Indian manufacturers have turned market challenges into growth opportunities, solidifying the country’s position as a global leader in the jewellery trade.

The Reserve Bank of India’s gold reserves have not just glimmered—they’ve exploded in value, tripling over the past year to a staggering ₹6.88 lakh crore. This surge is no mere accounting quirk. It’s a direct consequence of two powerful forces: the relentless rise in global gold prices and the RBI’s aggressive gold-buying spree, a strategy that now places India among the world’s most assertive central bank gold accumulators.

With 879 tonnes of gold—valued at nearly $97 billion at current prices—the RBI has emerged as the second-largest gold buyer among global central banks in 2024, surpassed only by China. Since the pandemic, India has added 244 tonnes to its reserves, and the pace has only accelerated amid escalating geopolitical risks and the specter of economic sanctions.

This is not just a story of numbers. It’s a reflection of a new world order in central banking, where gold is reclaiming its role as the ultimate hedge. The post-pandemic era, marked by the Russia-Ukraine conflict and recurring trade tensions between the U.S. and China, has forced monetary authorities to rethink their playbook. The global rush to gold—over 1,000 tonnes bought annually by central banks for three years running—underscores a collective anxiety about the durability of fiat currencies and the reliability of traditional reserve assets.

For India, the gold rush is both strategic and pragmatic. The RBI’s stated aim is to diversify its foreign currency assets and hedge against inflation and currency volatility. But the subtext is clear: in a world where sanctions can freeze reserves and trade wars can rattle markets overnight, physical gold offers a sanctuary that no digital ledger or sovereign bond can match.

The valuation windfall is also a timely buffer for India’s external accounts. With gold prices hitting record highs—₹95,935 per 10 grams on the MCX last week—India’s foreign exchange reserves have swelled, enhancing the RBI’s firepower to manage external shocks. This, in turn, sends a reassuring signal to markets about the central bank’s readiness for whatever turmoil lies ahead.

Yet, this golden moment is not without its caveats. The RBI’s buying spree has contributed to the very price surge that now inflates its balance sheet, raising questions about sustainability and the risk of a reversal if global sentiment shifts. Moreover, as central banks collectively pile into gold, the metal’s role as a “safe haven” could become a self-fulfilling—and potentially destabilizing—prophecy.

Avira Diamonds, the lab-grown diamond jewellery brand, has marked the beginning of its South India expansion with the opening of its first store in Hyderabad. The new outlet, located in the bustling neighbourhood of Madhapur, spans 1,600 square feet and showcases a diverse collection of jewellery, including earrings, bracelets, bangles, solitaires, and coloured diamonds.

This launch is a key step in Avira’s strategic growth across southern India, with plans to open additional stores in Andhra Pradesh and Telangana.

Suresh Jain, Founder and Managing Director of Avira Diamonds, shared his inspiration behind the brand’s vision: “The concept of earth-friendly diamonds instantly captivated me with its promise of sustainability and ethical sourcing. As I immersed myself in understanding this innovative approach, I discovered its profound potential to revolutionize the industry.”

He added, “With our first store in Hyderabad, we are excited to bring Avira’s signature craftsmanship and sustainable luxury to a city known for its rich legacy in jewellery and fine living. We’re here to make diamonds accessible to every Hyderabadi household.”

Avira Diamonds currently operates eight retail stores across Chennai, Bangalore, Puducherry, and Dubai. The brand continues to position itself as a leader in sustainable luxury, offering lab-grown diamonds that blend environmental responsibility with high-end design.