India’s Gems and Jewellery Exports Dip 2.49% to $2.05 Bn

India’s jewellery exports slipped in May as costly gold and tighter bullion supply hit production, while diamonds, silver and lab-grown stones held up better.

Key Highlights
 

• Rapid gold jewellery consignment decline led to a 2.49% fall in India’s gems and jewellery exports to $2,047.80 million in May 2026. 
   
• The trade was already under strain earlier this year, with FY2025-26 exports down 3.32% to $27.72 billion.

For May 2026, gems and jewellery exports from India were $2,047.80 million, as reported to Moneycontrol on June 16, 2026, from the Gem and Jewellery Export Promotion Council. During the reported month, gold prices were elevated and, at the same time, gold supply from official sources was significantly reduced. 

While the decline in exports may be perceived to be small, for exporters dependent on continuous orders, it is a considerable decline. Despite the dollar earnings declining, in terms of the rupee the earnings increased by 9.38% to ₹ 19,573.96 crore from ₹ 17,896.16 crore. This decline of dollar earnings may lead to a decline of orders, which in turn, leads to a decline in production for the workshops located in Surat, Mumbai, and Jaipur. 

What Pulled Exports Lower In May?

Gold jewellery took the hardest hit. Plain gold jewellery was hit even more sharply than the broader category.

A buyer in India already knows what this looks like at the counter. A family that planned to buy a 20-gram necklace may now settle for 12 grams, or switch to a lighter design. Some move to silver. Some postpone the purchase.

Not every category struggled. Lab-grown polished diamond exports rose 25.99% to $101.50 million, while silver jewellery exports increased 14.73% to $97.39 million, according to the PTI report carried by Rediff on June 16, 2026⁠.

What Are Exporters Saying And What Could Help?

GJEPC Chairman Kirit Bhansali said high prices, restricted gold supply through banks and import-related hurdles affected exporters. The trade body has already taken the issue up with the government.

The fix is not complicated, at least on paper. Exporters need easier access to bullion, fewer delays in approvals, and better traction in markets beyond the US.

There is also a consumer angle. LoansJagat reported on April 18, 2026 that gold-loan balances had grown 3.8 times since March 2022. For many households, a higher gold value means access to a bigger loan. That can help during a cash crunch, but the larger EMI may become difficult once regular expenses start piling up.

Conclusion

May’s 2.49% fall was not a collapse, but the 29.39% drop in plain gold jewellery is a warning sign. If gold stays expensive and supply remains tight, exporters may lean harder on diamonds, silver and lighter products for the next few months.

FAQs

Why Did India’s Gems And Jewellery Exports Fall In May 2026?

High gold prices, restricted bullion supply and weaker gold jewellery orders pulled exports down by 2.49%.

Which Export Categories Performed Better In May?