Gold supply crunch drags India's jewellery exports; silver shipments surge 172%: GJEPC
New Delhi, June 15
India's gem and jewellery exports declined 6 per cent year-on-year to USD 4.27 billion during April-May 2026, weighed down by a sharp fall in plain gold jewellery shipments amid gold supply constraints and rising input costs, even as silver jewellery exports emerged as a bright spot with a surge of over 172 per cent, according to the Gem and Jewellery Export Promotion Council.
India's gems and jewellery industry has been facing challenges due to several factors including increased gold prices, limited availability of gold for export production and regulatory bottlenecks impacting gold supply through banking channels.
According to the release, India's overall exports registered a growth of 3.99 per cent in rupee terms despite 6.03 per cent decline in dollar terms. The decline was largely due to a steep fall in plain gold jewellery exports, which dropped 40.11 per cent year-on-year to USD 635.95 million from USD 1.06 billion in the same period last year.
Plain gold jewellery exports remain a major area of concern largely attributed to tighter gold imports, which have constrained the availability of the precious metal for export-oriented manufacturing. "We have taken up this matter with the Government and are hopeful of a positive resolution," said GJEPC.
The industry body further highlighted that the "impact is evident in gold consumption for export production, which declined to estimated 11 tonnes during April-May 2026 from around 14 tonnes that was estimated in the corresponding period last year, a reduction of nearly 21.4 per cent."
Amid weakness in gold jewellery exports, silver jewellery shipments jumped over 172 per cent to USD 365.77 million, as per the release. "Silver Jewellery exports surged 172.53% to US$ 365.77 million (Rs. 3,439.19 crore, up 199.91% in rupee terms) from US$ 134.21 million (Rs. 1,146.73 crore). Strengthening exports is critical to supporting India's balance of payments position and addressing the current account deficit," it said.
"The average gold price during April-May 2026 increased to USD 4,723.88 per troy ounce from USD 3,242.48 per troy ounce in April-May 2025, representing a year-on-year increase of 45.69 per cent. While exporters continue to bear the burden of higher input costs, the Duty Drawback rates have not been revised accordingly, adversely affecting the competitiveness and margins of jewellery exporters," it added.
— ANI
Reader Comments
The 45% jump in gold prices is insane! How are exporters supposed to compete globally when duty drawback rates haven't been revised? It's like being asked to run a race with a weight on your back. Silver is saving the day, but we need structural fixes.
Impressive to see silver picking up the slack. But the drop in gold jewellery exports (40%) is a huge red flag. India has been a global hub for gold jewellery for centuries—this shouldn't be taken lightly. Hope the GJEPC's talks with the government yield results.
11 tonnes of gold used vs 14 tonnes last year—that's a 21% drop in production. Not just numbers, that's hundreds of karigars (artisans) losing work. Silver is great but it doesn't employ the same skilled workforce. Need an urgent policy intervention.
Interesting that exports in rupee terms grew 4%, while dollar terms fell 6%. Shows the rupee depreciation is actually helping a bit. But the core issue is gold availability—if banks and import policies don't ease up, we'll lose market share to Dubai and Turkey.
I've seen this coming—my uncle runs a small jewellery export unit in Surat. Gold import restrictions are squeezing them dry. Meanwhile, silver is booming because margins are better and raw material is easier to source. Diversification is key, but we can't abandon gold entirely. 🥇🥈
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