The country’s gross gems and jewellery exports stood at $1.41 billion (₹13,500.21 crore) in May, compared with the same month last year. Gross imports dropped 16.42% to $1.41 billion (₹13,500.21 crore), according to industry data released on June 15.
For the first two months of FY27 (April-May 2026), cumulative exports declined 6.03% to $4.27 billion from $4.55 billion a year earlier, while imports fell 12.67% to $3.25 billion from $3.72 billion.
The industry attributed the weakness to subdued international demand amid ongoing tensions in West Asia, which have prompted buyers in both domestic and overseas markets to adopt a wait-and-watch approach.
Despite the overall slowdown, several segments posted strong growth.
Exports of polished lab-grown diamonds rose 25.99% year-on-year to $101.5 million in May, while April-May exports increased 1.98% to $194.78 million. Export volumes of worked lab-grown diamonds climbed 16.81% to 28.34 lakh carats during the two-month period, highlighting rising demand for lower-cost alternatives to natural diamonds.
Silver jewellery emerged as one of the strongest-performing categories, with April-May exports surging 172.53% year-on-year to $365.77 million. Platinum jewellery exports also increased 24.97% to $41.22 million during the period, indicating growing consumer preference for relatively affordable precious metal jewellery.
The performance remained mixed across traditional segments.
Cut and polished diamond exports increased 3.31% year-on-year to $980.73 million in May, while export volumes rose 4.81% to 26.74 lakh carats. However, cumulative exports for April-May declined 9.06% to $1.87 billion.
Rough diamond imports dropped sharply by 34.69% to $1.46 billion in May, reflecting weaker global demand.
Gold jewellery exports continued to struggle. Total gold jewellery exports fell 14.75% year-on-year to $758.44 million in May. Plain gold jewellery exports declined 29.39% to $294.87 million, while studded gold jewellery exports slipped a marginal 1.79% to $463.57 million. However, April-May exports of studded gold jewellery still recorded a 6.71% increase.
Colin Shah, Managing Director of Kama Jewelry, said that while progress towards a truce in conflict-hit regions could support a gradual revival in overseas trade, gems and jewellery exports are likely to remain under pressure until there is greater geopolitical stability.
He added that newly signed free trade agreements could help exporters diversify into newer markets and cushion the impact of the downturn.
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