Gem and jewellery exports fall 6% in Apr-May 2026

Exports weaken as plain gold jewellery drags

India’s gem and jewellery exports declined 6% year-on-year to USD 4,270 million during April-May 2026, according to the Gem and Jewellery Export Promotion Council (GJEPC). The fall was driven mainly by a steep drop in plain gold jewellery shipments, a category that remains central to India’s export mix. GJEPC cited a mix of high gold prices, limited availability of gold for export production, and regulatory bottlenecks affecting gold procurement through banking channels.

The council also reported that overall exports recorded a 3.99% increase in rupee terms even as they fell 6.03% in dollar terms. That split underlined how currency movement can mask the underlying volume and pricing pressures exporters are facing.

Plain gold jewellery exports see the sharpest hit

Plain gold jewellery exports fell 40.11% year-on-year to USD 635.95 million in April-May 2026, from USD 1,060 million in the same period a year earlier. Industry participants linked the decline to tighter gold import rules and disruptions in the banking channel, both of which constrained gold availability for export-oriented manufacturing.

The pressure also showed up in manufacturing inputs. Estimated gold consumption for export fabrication dropped to 11 tonnes in April-May 2026, compared with around 14 tonnes in the year-ago period, a decline of nearly 21.4%. GJEPC leadership indicated the industry has taken the issue of restricted gold availability up with the government, and is looking for a resolution that can restore supply.

May snapshot: overall gold jewellery exports slip

On a monthly basis, overall gold jewellery exports fell 14.75% to USD 758.44 million in May, from USD 889.63 million in the same month last year. The decline was attributed largely to weakness in plain gold jewellery exports.

GJEPC also flagged regulatory hurdles affecting gold procurement through banks, alongside tight supply conditions for export manufacturing. The narrative from exporters has been consistent: even when overseas demand is present, execution becomes harder when raw material availability is uncertain.

Silver jewellery turns into a bright spot

While gold jewellery exports weakened, silver jewellery stood out. Silver jewellery exports rose over 172% to USD 365.77 million during April-May 2026, as per the GJEPC release. A separate rupee-denominated figure also pointed to strong growth in the segment, reflecting that the momentum was not just a currency effect.

The jump in silver jewellery shipments indicated continued demand in alternative jewellery categories at a time when gold prices and gold supply constraints are affecting affordability and production planning for gold exporters.

Studded gold jewellery provides partial support

Studded gold jewellery exports increased 6.7% to USD 964.02 million during April-May 2026, compared with USD 903.37 million a year earlier. GJEPC leadership linked part of this resilience to India’s free trade agreements (FTAs), which have helped improve market access and competitiveness in key overseas markets.

Even with this gain, the overall export picture remained weighed down because the decline in plain gold jewellery was significantly larger in absolute terms.

High gold prices and duty changes raise costs

Exporters have been operating amid a sharp rise in gold prices. The average gold price during April-May 2026 rose to USD 3,723.88 per troy ounce, up from USD 2,554.24 per troy ounce in the same period of 2025, a year-on-year increase of 45.69%.

Input costs also rose after the gold import duty increased from 6% to 15%, which pushed up the landed cost of gold. Industry voices have linked this combination of higher prices and policy-related frictions to pressure on both demand and manufacturing feasibility for export orders.

Other export segments: diamonds down, lab-grown up

Beyond jewellery, other key segments showed mixed performance in April-May 2026. Cut and polished diamond exports fell 9% to USD 1,870 million, while coloured gemstone exports declined 10% to USD 55.93 million.

In contrast, polished lab-grown diamond exports rose nearly 2% to USD 194.78 million, and platinum jewellery exports increased 25% to USD 41.22 million. The pattern suggests demand continues in some categories even as traditional gold-driven segments face supply and pricing constraints.

April 2026: a weaker start to the new fiscal

Data for April 2026 also showed softness. India’s gem and jewellery exports declined 9.07% year-on-year to USD 2,450 million (₹20,952 crore). In the same month, plain gold jewellery exports fell 47.06% to USD 341.08 million, while overall gold jewellery exports including studded items declined 21.77% to USD 841.54 million.

Industry sources cited global economic uncertainty, volatile precious metal prices, and cautious buyer sentiment amid geopolitical tensions as contributing factors.

Domestic backdrop: volumes expected to fall further

A Crisil Ratings report added that the organised gold jewellery retail sector in India, covering jewellery, coins and bars, is expected to see a further 13-15% year-on-year decline in sales volume this fiscal, after an 8% contraction last fiscal. Crisil projected volumes could decline to 620-640 tonnes.

The report also pointed to a shift in preferences, noting that over the past two fiscals, jewellery sales declined around 25%, while sales of gold bars and coins rose more than 50%.

Key numbers at a glance

Why the data matters for markets and exporters

The export data highlights how supply-side constraints can translate into weaker shipment numbers even when some international categories remain stable. Plain gold jewellery, which has shown the sharpest decline, is being hit simultaneously by higher input costs, tighter import conditions, and frictions in banking-channel sourcing.

At the same time, strong growth in silver jewellery and incremental gains in studded gold and lab-grown diamonds indicate that parts of the export ecosystem are adapting to price and affordability pressures. Near-term outcomes will likely depend on how quickly gold availability issues are resolved and whether policy clarity helps exporters plan raw material procurement with fewer disruptions.

What to watch next

GJEPC has indicated the industry has raised gold availability constraints with the government and is seeking a favourable resolution. Exporters will also be tracking any further policy decisions on gold sourcing, import processes, and trade discussions such as potential agreements with the US and Canada mentioned in the sector commentary.

For now, the headline trend remains clear: overall exports are down, plain gold jewellery is the main drag, and silver jewellery is the standout performer in early FY27 trade data.