Diamond and Plain Gold Jewellery Exports Take a Major Hit in April-May 2026

Surat: India’s gem and jewellery sector has begun the financial year on a challenging note, with exports of cut and polished diamonds and plain gold jewellery witnessing a sharp decline during April and May 2026. Industry leaders have raised concerns over rising input costs, limited gold availability and regulatory bottlenecks, warning that the sector is facing mounting pressure despite growth in select segments.

According to data released by the Gem & Jewellery Export Promotion Council (GJEPC), India’s overall gem and jewellery exports stood at US$4.27 billion during April-May 2026, down 6.03% from US$4.55 billion recorded in the corresponding period last year.

The steepest fall came from plain gold jewellery exports, which plunged 40.11% year-on-year to US$635.95 million compared to US$1.06 billion during April-May 2025. At the same time, cut and polished diamond exports declined 9.06% to US$1.87 billion from US$2.06 billion a year earlier.

Chairman of the Gem & Jewellery Export Promotion Council, Kirit Bhansali, said the sharp contraction in plain gold jewellery exports remains the industry’s biggest concern.

“Plain gold jewellery exports have fallen significantly due to tightening gold imports and limited availability of gold for export manufacturing. We have taken up the matter with the government and are hopeful that corrective measures will be implemented soon,” Bhansali said.

The industry body noted that gold consumption for export production fell from an estimated 14 tonnes during April-May 2025 to around 11 tonnes in the same period this year, reflecting a decline of over 21%.

The situation has been aggravated by a dramatic rise in gold prices. The average gold price surged nearly 46% year-on-year to US$4,723.88 per troy ounce during April-May 2026, significantly increasing production costs for exporters. Industry representatives also pointed to the increase in gold import duty from 6% to 15%, which has further impacted competitiveness and profit margins.

While the diamond sector recorded a moderate decline, exporters remain cautious amid increasing global competition. Bhansali said the industry is working closely with policymakers to strengthen India’s position not only as the world’s leading diamond manufacturing centre but also as a global rough diamond trading hub.

Despite the overall slowdown, some segments offered reasons for optimism. Studded gold jewellery exports rose 6.71%, polished lab-grown diamond exports increased 1.98%, and silver jewellery exports surged an impressive 172.53%.

“India’s trade agreements and new market opportunities, including jewellery exports to Oman under the CEPA framework, are expected to support long-term growth,” Bhansali added.