Gems and jewellery exports slip 3.32% in FY26 to $27.72bn

India’s gems and jewellery export cycle turned volatile through FY 2025-26, ending with a modest annual decline but punctuated by a steep fall in March 2026. Official trade data showed overall exports for April 2025 to March 2026 slipped 3.32% year-on-year to $17.72 billion, while imports rose sharply. The year-end stress was visible in March, when exports fell more than 35% as overseas demand stayed soft and geopolitical and tariff-related disruptions weighed on shipments.

The data also underlined how uneven the segment performance was across diamonds, gold jewellery and newer product categories such as lab-grown diamonds. While currency depreciation supported the rupee value of exports, the dollar value reflected a cautious global retail environment and inventory adjustments by buyers.

FY26 in one line: small annual fall, sharp monthly swings

For the full financial year April 2025 to March 2026, India’s overall gems and jewellery exports declined 3.32% to $17.72 billion. In rupee terms, exports increased 0.93%, helped by currency depreciation. Imports, however, rose 16.99% to $12.83 billion, indicating higher inbound raw materials and inventory movement even as export demand stayed weak.

A trade body cited weak global consumption, elevated crude oil prices and supply chain disruptions linked to geopolitical tensions as key reasons behind subdued performance through the year. It also pointed to overseas buyers reducing purchases and liquidating inventories amid broader macroeconomic uncertainty.

March 2026: exports fall 35.23% to $1.78 billion

The sharpest point of stress came at the end of the fiscal year. In March 2026, gems and jewellery exports fell 35.23% year-on-year to $1.78 billion, according to official trade data. The decline was attributed to weak international demand, ongoing geopolitical tensions in West Asia, and a broader backdrop of economic uncertainty.

The March numbers matter because they capture year-end ordering decisions and inventory positions among global buyers. A steep drop at this point typically reflects both demand weakness and risk aversion in stocking patterns.

Gold jewellery hit by high prices and muted seasonal demand

Gold jewellery exports contracted sharply in March. The data showed gold jewellery exports fell 48.11% to $1.656 billion in March 2026, linked to elevated gold prices, muted seasonal demand and reduced orders from overseas buyers.

The pressure from price levels also showed up in product commentary elsewhere in the data set, which noted that plain gold jewellery weakened by 7% as consumers recoiled from high prices. Together, these datapoints suggest that even where interest in gold persists, order volumes can swing quickly when prices rise and discretionary spending tightens.

Diamonds: natural segment weak, lab-grown also under pressure

The diamonds segment recorded uneven performance, with a clear pullback in March. Cut and polished diamond exports fell 27.48% to $1.839 billion in March 2026, reflecting subdued demand, cautious buying patterns and price corrections in key global markets.

For the full fiscal year, cut and polished diamond exports were reported to have dropped 8.52% to $12.16 billion. The year-end slump also aligned with commentary that January saw steep inventory corrections by global buyers and March recorded a final sharp fall driven by Middle East geopolitical tensions and subdued year-end demand.

Lab-grown polished diamond exports were also reported to have declined 27.56% in March 2026, weighed down by weak retail demand, pricing pressures and inventory adjustments across global markets.

The US market: the biggest headwind

The United States was highlighted as the primary headwind during the period. Exports to the US were reported to have plummeted by nearly 45%, driven by policy pressures and cautious inventory management. This hit the diamond segment the hardest, consistent with the broader trend of weaker discretionary purchases and greater scrutiny of inventory levels across luxury categories.

Separately, in commentary around later-month demand patterns, the US tariff environment was repeatedly cited as a trigger for order timing shifts. That dynamic can create sharp month-to-month volatility even when the broader annual decline appears modest.

October 2025: a 30.57% fall tied to tariff-related timing

The sector also saw sharp drops earlier in the year. In October 2025, exports declined 30.57% to $1.168 billion, based on GJEPC data. GJEPC chairman Kirit Bhansali linked the fall to demand being advanced ahead of a US tariff implementation, noting that stocking for festivals largely took place before August 27, reducing October demand.

In October 2025, key segments also weakened: cut and polished diamonds fell 26.97% to $1.026 billion, polished lab-grown diamond shipments dipped 34.90% to $1.094 billion, and gold jewellery exports dropped 28.4% to $1.850 billion.

April 2025: early-year dip, but coloured gemstones showed resilience

At the start of FY26, April 2025 data already indicated softness. Overall gross exports in April 2025 declined 4.62% to $1.037 billion, while overall imports fell 17.61% to $1.569 billion.

Within April, cut and polished diamond exports fell 6.12% to $1.109 billion, while gold jewellery exports declined 5.41% to $1.685 billion. In contrast, coloured gemstone exports rose 11.95% to $1.028 billion, and polished lab-grown diamond exports edged up 0.41% to $1.111 billion, supported by growing interest among younger consumers for sustainability and affordability.

Key figures snapshot

Market impact: what the numbers imply for exporters

The data points to a year where exporters faced two simultaneous challenges: unstable demand in key markets and cost or price pressures across inputs and finished jewellery. A 16.99% rise in imports alongside a 3.32% decline in exports suggests tighter working capital management will matter, particularly if export realizations stay under pressure.

It also highlights segment rotation risk. Gold jewellery exports saw extreme volatility between months as prices rose and overseas orders softened, while natural diamond shipments faced both demand weakness and competition pressures. The reported decline in lab-grown polished diamonds in March, despite some earlier strength, shows that newer categories are not immune to inventory corrections.

Why FY26 looked “modest” annually but risky month-to-month

The annual decline of 3.32% can appear manageable on the surface, but monthly moves such as the 35% drop in March and the 30% drop in October show how quickly trade flows can change when tariffs, geopolitical events and inventory cycles collide. The dataset also points to the role of year-end dynamics: inventory corrections in January and a final sharp fall in March linked to Middle East tensions and subdued year-end demand.

For investors tracking listed exporters and ancillary businesses, the key takeaway is that headline annual totals may understate the earnings volatility that can arise from sudden order deferrals, price corrections, and policy-driven disruptions.

Conclusion

India’s gems and jewellery exports closed FY26 at $17.72 billion, down 3.32%, but the year was defined by sharp month-to-month swings, led by a steep March 2026 contraction and visible stress in diamonds and gold jewellery. With imports rising to $12.83 billion, the sector enters the next cycle with heightened sensitivity to global demand, tariff timelines, bullion prices and geopolitical developments that can quickly reshape ordering patterns.