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.

Kirit Bhansali, Chairman, GJEPC, said:

“Studded Gold Jewellery exports grew 6.71% year-on-year to US$ 964.02 million during April–May 2026, compared to US$ 903.37 million in the corresponding period last year. This growth reflects the positive impact of India’s Free Trade Agreements (FTAs), which are enhancing market access and strengthening the competitiveness of Indian jewellery exports in key markets.

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.

The impact is evident in gold consumption for export production, which declined to an estimated 11 tonnes during April–May 2026 from around 14 tonnes in the corresponding period last year, a reduction of nearly 21.4%.

GJEPC has been among the foremost industry bodies to support the Hon’ble Prime Minister’s appeal to moderate gold imports in the national interest. At the same time, it is important to ensure adequate availability of gold for export manufacturing, as the gem and jewellery sector is a significant source of foreign exchange earnings. Strengthening exports is critical to supporting India’s balance of payments position and addressing the current account deficit.

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 45.69% year-on-year increase.

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.

The export industry is presently facing a serious liquidity and raw material availability crunch. We have been engaging with the Government on these issues on an urgent basis and remain confident that appropriate corrective measures will be taken to support export growth and strengthen the sector’s global competitiveness.”

“We are encouraged by the successful commencement of jewellery exports to Oman under the India-Oman CEPA. As Oman is an important market for plain gold jewellery, this agreement is expected to create new opportunities for Indian exporters and support export growth.

We commend the Government for its proactive pursuit of trade agreements and look forward to the early conclusion of the proposed Bilateral Trade Agreement (BTA) with the United States, as indicated by Hon’ble Commerce and Industry Minister Shri Piyush Goyal. We are also optimistic about progress on a trade agreement with Canada. These initiatives will play a vital role in market diversification, expanding export opportunities and strengthening the global competitiveness of India’s gem and jewellery sector.”

Commenting on the diamond sector, Kirit Bhansali said, “The diamond exports have remained steady, and we are working closely with the Government to enhance the competitiveness of India’s diamond industry. With increasing global competition, GJEPC has renewed its efforts to seek regulatory and tax-related reforms that will facilitate rough diamond trading from India. Currently, a significant share of rough diamond trading is routed through hubs such as Belgium and the UAE. With the right policy support, India can strengthen its position not only as the world’s leading diamond manufacturing centre but also as a global diamond trading hub.”

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).