Resilience amid global uncertainty, shifting demand patterns, and the future of India’s gems and jewellery exports
India’s gems and jewellery industry has long been one of the country’s most globally integrated sectors. From diamond cutting in Surat to gold jewellery manufacturing in Mumbai and Jaipur, the industry connects India to markets across the United States, Middle East, Europe, and Asia.
As of Q1 2026, the sector stands at an important inflection point.
After facing global demand slowdowns, geopolitical disruptions, and changing consumer preferences over the past two years, India’s jewellery export industry is showing signs of resilience — but also undergoing structural shifts.
This report examines the performance of India’s jewellery exports in Q1 2026, key trends across product categories, major export markets, challenges, and the road ahead.
1. Overall Export Performance: Stability with Early Signs of Recovery
India’s gems and jewellery exports have remained broadly stable in the current financial year.
- Total exports (April 2025 – February 2026): ~$25.93 billion (The Economic Times)
- Growth: almost flat year-on-year (0.07%) (gjepc.org)
For February 2026 specifically:
- Exports reached $2.68 billion, up ~3.86% YoY (The Economic Times)
This data reflects a key insight:
The sector is not booming — but it is stabilizing after a difficult period.
The global gems and jewellery industry has faced headwinds such as:
- weak demand in major markets like the United States
- geopolitical disruptions affecting trade routes
- inflation impacting luxury consumption
Despite this, India’s export performance indicates resilience and adaptability.
2. Product-Wise Trends: A Changing Export Mix
One of the most important developments in Q1 2026 is the shift in export composition.
1. Gold Jewellery: Steady Growth
Within this:
- Studded jewellery (higher value): strong growth (~8.9%)
- Plain gold jewellery: modest growth (~2.4%)
This indicates a shift toward value-added products, not just volume exports.
2. Silver Jewellery: Strong Performer
- Silver jewellery exports grew sharply: ~55% YoY (gjepc.org)
This surge is driven by:
- rising global silver prices
- increasing demand for affordable luxury
- growing popularity in Western markets
Silver has emerged as one of the fastest-growing segments in India’s jewellery exports.
3. Diamonds: A Weak Segment
- Cut and polished diamond exports: declined ~6.7% YoY (gjepc.org)
India processes nearly 90% of the world’s diamonds, but demand has weakened due to:
- slowdown in US and China markets
- rising competition from lab-grown diamonds
- shifting consumer preferences
This remains the biggest drag on overall export growth.
4. Lab-Grown Diamonds: Mixed Signals
- Volume growth remains strong
- Value growth has slowed due to falling prices
This segment reflects a broader structural change:
The diamond industry is transitioning toward lab-grown alternatives.
3. Market-Wise Trends: Diversification in Action
India’s export strategy is increasingly focused on market diversification.
1. United Arab Emirates (UAE)
- Exports grew ~22% YoY (gjepc.org)
The UAE has emerged as a major hub due to:
- India-UAE Free Trade Agreement (FTA)
- Dubai’s role as a global jewellery trading center
2. Hong Kong
- Exports increased ~30% YoY (gjepc.org)
Hong Kong continues to serve as a gateway to East Asian markets.
3. United States (Declining Market)
- Exports fell sharply (~44% YoY) (gjepc.org)
Reasons include:
- tariff-related issues
- slowing luxury demand
- economic uncertainty
4. Emerging Markets
India is increasingly targeting:
- Australia
- Middle East beyond UAE
- Southeast Asia
This diversification strategy is helping reduce dependency on a few large markets.
4. Key Developments in Q1 2026
Several important developments have shaped the sector in early 2026:
1. Middle East Disruptions
Shipping disruptions due to geopolitical tensions have affected exports, especially through Dubai — a key global hub. (Reuters)
2. Government Support Measures
The government provided temporary relief to exporters facing delays, including extended deadlines for trade obligations. (The Times of India)
3. Import Restrictions to Protect Domestic Industry
India restricted jewellery imports to protect domestic manufacturers and prevent misuse of trade agreements. (The Economic Times)
4. Silver and Platinum Demand Surge
Growth in silver and platinum jewellery exports has been driven by rising global prices and demand. (The Times of India)
5. Structural Strengths of India’s Jewellery Industry
India’s position in global jewellery exports is supported by several long-term advantages.
1. Skilled Workforce
India has a large base of skilled artisans, particularly in:
- diamond cutting
- gold jewellery design
- handcrafted ornaments
2. Global Supply Chain Integration
India is deeply integrated into global value chains, especially in diamonds and precious stones.
3. Strong Institutional Support
The Gem & Jewellery Export Promotion Council (GJEPC) plays a key role in:
- promoting exports
- organizing trade shows
- supporting policy development
4. Cost Competitiveness
India offers competitive manufacturing costs compared to Western markets.
5. Trade Agreements (FTAs)
Free Trade Agreements with countries such as the UAE are helping expand market access.
6. Key Challenges Facing the Sector
Despite its strengths, the industry faces several challenges.
1. Global Demand Uncertainty
Luxury consumption is highly sensitive to:
- economic cycles
- inflation
- consumer sentiment
2. Diamond Industry Slowdown
The traditional diamond segment is under pressure due to:
- lab-grown competition
- changing consumer preferences
3. Logistics and Geopolitical Risks
Trade disruptions in the Middle East highlight the vulnerability of global supply chains.
4. Currency Volatility
Fluctuations in the Indian rupee impact export competitiveness and margins.
5. Regulatory Complexity
Exporters must navigate:
- international trade rules
- tariffs
- compliance requirements
7. Emerging Opportunities
Despite challenges, several growth opportunities are emerging.
1. Silver and Affordable Jewellery
Rising demand for affordable luxury is boosting silver jewellery exports.
2. Lab-Grown Diamonds
India is becoming a major hub for lab-grown diamond manufacturing.
3. E-commerce and Digital Sales
Global consumers are increasingly purchasing jewellery online.
4. Brand India
Indian jewellery design is gaining recognition internationally, especially in:
- bridal jewellery
- handcrafted luxury products
5. Expansion into New Markets
Africa, Latin America, and Southeast Asia offer new growth opportunities.
8. Government Policy and Long-Term Vision
India has ambitious goals for the jewellery export sector:
- Target: $75 billion exports by 2030 (India Brand Equity Foundation)
- Long-term goal: $100 billion by 2047 (India Brand Equity Foundation)
To achieve this, policy focus includes:
- improving trade infrastructure
- simplifying export processes
- negotiating favorable trade agreements
- supporting MSMEs in the sector
9. Outlook for 2026
The outlook for India’s jewellery exports in 2026 can be described as:
Short-Term (2026)
- Moderate growth
- Continued volatility due to global factors
- Recovery driven by diversification
Medium-Term (3–5 years)
- Strong growth in non-diamond segments
- Increased role of silver and studded jewellery
- Expansion into new markets
Long-Term (10+ years)
- India could emerge as a global leader in value-added jewellery exports
- Shift from volume to design and branding
Conclusion
India’s jewellery export sector in Q1 2026 reflects a transition phase.
The industry is moving:
- from dependence on diamonds → toward diversified products
- from traditional markets → toward global expansion
- from volume-driven growth → toward value-added exports
Despite global uncertainties, the sector has demonstrated resilience. With the right combination of policy support, innovation, and market diversification, India’s jewellery industry has the potential to remain one of the country’s strongest export sectors in the decades ahead.