India’s gems and jewellery exports witnessed a modest decline in May 2026, as elevated gold prices and limited gold availability weighed on overseas shipments. While gold jewellery exports remained under pressure, exports of cut and polished diamonds, lab-grown diamonds, and silver jewellery posted healthy growth during the month.
Overall Export Performance
According to the Gem & Jewellery Export Promotion Council (GJEPC):
Total Exports (May 2026): US$2.05 billion (₹19,573.96 crore)
May 2025: US$2.10 billion (₹17,896.16 crore)
Year-on-Year Change: ▼ 2.49%
Although exports declined in dollar terms, the rupee value remained higher due to exchange rate movements.
Gold Jewellery Exports See Sharp Decline
Gold jewellery remained the weakest segment during the month.
Plain Gold Jewellery Exports
May 2026: US$758.44 million
May 2025: US$889.63 million
Decline: 14.75% YoY
Industry participants attributed the decline to:
Record-high international gold prices
Lower availability of gold for export manufacturing
Regulatory bottlenecks affecting gold supply through banking channels
Studded Jewellery Performs Better
Despite weakness in plain gold jewellery, studded gold jewellery continued to remain resilient.
Exports: US$463.57 million (₹4,429.56 crore)
Growth: 1.79% YoY
According to GJEPC Chairman Kirit Bhansali, the growth was supported by India’s Free Trade Agreements (FTAs), which continue to improve export opportunities for value-added jewellery.
Diamonds and Silver Jewellery Register Growth
Several export categories posted positive growth during May.
Cut & Polished Diamonds
Exports: US$980.73 million
Growth: 3.31% YoY
Polished Lab-Grown Diamonds
Exports: US$101.50 million
Growth: 25.99% YoY
Silver Jewellery
Exports: US$97.39 million
Growth: 14.73% YoY
The continued growth in lab-grown diamonds reflects rising global demand for affordable and sustainable alternatives.
Gold Prices Continue to Pressure Exporters
The council highlighted a significant increase in gold prices during April-May 2026.
Average Gold Price
April-May 2026: US$4,723.88 per troy ounce
April-May 2025: US$3,242.48 per troy ounce
Increase: 45.69%
Higher prices reduced export demand and increased working capital requirements for jewellery manufacturers.
Gold Availability Also Declined
Gold consumption for export production also fell.
April-May 2025: 14 tonnes
April-May 2026: 11 tonnes
Decline: 21.4%
Industry representatives indicated that reduced gold availability through banking channels has further constrained export production.
Key Highlights
Overall exports declined: 2.49%
Gold jewellery exports fell: 14.75%
Studded jewellery grew: 1.79%
Cut & polished diamonds increased: 3.31%
Lab-grown diamond exports surged: 25.99%
Silver jewellery exports rose: 14.73%
Average gold prices increased nearly 46% YoY
Conclusion
India’s gems and jewellery export sector remained under pressure in May 2026, primarily because of record-high gold prices and constrained gold availability. However, strong growth in diamonds, lab-grown diamonds, and silver jewellery helped cushion the overall decline, indicating continued demand for diversified jewellery products despite challenges in the traditional gold segment.
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