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India's Gem Exports Dip 3.3% in FY26, But UAE & Australia Shine as Growth Markets

India's gem and jewellery exports declined in FY25-26, impacted by tariff pressures and subdued demand in key markets like the US. However, strong growth in destinations like the UAE and Australia highlights a successful shift towards market diversification. Exports of silver and platinum jewellery saw significant increases, while cut and polished diamonds remained the largest category despite a decline. The sector is undergoing a structural reset, with exporters focusing on value-added products and new geographies.

Key Points: India Gem & Jewellery Exports Fall in FY26, Key Markets Shift

  • Overall exports fell 3.32% to $27.72B
  • US market hit by tariff uncertainties
  • UAE and Australia saw robust double-digit growth
  • Silver jewellery exports surged over 52%
2 min read

India's gem, jewellery exports decline in FY26 amid tariff pressures; but UAE, Australia among key growth markets

India's gem and jewellery exports declined to $27.72B in FY26. US tariffs impacted growth, but UAE, Australia, and Canada saw strong increases.

"Exporters have actively diversified into new geographies - Kirit Bhansali"

New Delhi, April 15

India's gem and jewellery exports declined in the financial year 2025-26, impacted by tariff-related uncertainties in key markets such as the United States, even as countries like the UAE, Hong Kong, Australia and Canada demonstrated strong growth, reflecting a shift towards market diversification.

According to data released by the Gem and Jewellery Export Promotion Council, exports stood at USD 27.72 billion in FY26, registering a decline of 3.32 per cent year-on-year. In rupee terms, however, exports rose marginally by 0.93 per cent to Rs 2,44,827.26 crore compared to Rs 2,42,559.39 crore in the previous financial year.

The decline was largely attributed to evolving tariff regimes in the US, along with global inventory corrections, subdued discretionary demand, and increasing competition from alternative luxury segments.

Despite the overall decline, several markets recorded strong growth. Exports to the UAE grew over 22 per cent during April-February 2026, although full-year growth moderated to 10.52 per cent due to emerging tensions in West Asia, with exports reaching USD 8.70 billion. Australia also saw robust growth of 38.33 per cent, highlighting the role of free trade agreements in supporting export expansion.

Kirit Bhansali, Chairman of the council, said the sector is undergoing a structural reset with reduced dependence on a single market.

"Exporters have actively diversified into new geographies, strengthened value-added segments, and adapted swiftly to evolving global trade dynamics," he said.

Among product segments, cut and polished diamonds remained the largest category, contributing 43.9 per cent of total exports at USD 12.16 billion, though declining by 8.52 per cent year-on-year.

Gold jewellery exports remained largely stable at USD 11.36 billion. Within this, plain gold jewellery exports declined by 7.42 per cent to USD 4.84 billion due to elevated gold prices, while studded gold jewellery exports grew by 6.27 per cent to USD 6.52 billion, supported by demand for value-added products.

Silver jewellery exports recorded strong growth, surging 52.21 per cent to USD 1.47 billion, driven by rising affordability and global demand. Platinum jewellery exports also grew by 39.32 per cent to USD 254.60 million, reflecting increasing traction in premium segments.

Polished lab-grown diamond exports declined by 10.55 per cent to USD 1.13 billion, although volumes increased, indicating price corrections. At the same time, gold jewellery studded with lab-grown diamonds rose by 31.30 per cent to USD 1,425.51 million.

Regionally, the Western Region led exports with USD 18,579.41 million, followed by Gujarat with USD 2,400.61 million.

- ANI

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Reader Comments

P
Priya S
The surge in silver jewellery exports by 52% is the real story here! It shows global consumers are looking for affordable luxury, and our industry is capturing that demand perfectly. Great to see value-added segments like studded gold jewellery growing too.
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Rohit P
A small decline in dollar terms but growth in rupee terms? That's confusing for a layman. Does this mean the rupee weakened, making our exports less valuable globally? Would appreciate if someone could explain.
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Sarah B
Interesting data. The 38% growth in Australia is impressive. As someone in the trade, I hope the government pushes for more such comprehensive FTAs, especially with the EU and UK, to shield us from tariff pressures in any one country.
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Aman W
The lab-grown diamond segment is fascinating. Exports down by value but volumes up? Sounds like a price war and commoditization has started. The future is in combining them with gold jewellery, as that 31% growth shows. Smart move by our designers!
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Neha E
While diversification is good, we cannot ignore the 8.5% decline in cut & polished diamonds – that's our traditional strength. We need to focus on branding "Made in India" jewellery as a premium, artistic choice globally, not just a manufacturing hub.
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David E

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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