Gem, jewellery exports rise 3.14% to $2.30 bn in August despite weak demand

Kolkata: India’s gem and jewellery exports rose 3.14% in US dollar terms in August to $2.30 billion, even as high gold prices and weak demand for plain gold jewellery continued to weigh on parts of the sector.

In rupee terms, gross exports grew 12.52% year-on-year to ₹21,945.87 crore in August 2026, compared with $2.23 billion (₹19,503.52 crore) a year earlier, according to data released by the Gem & Jewellery Export Promotion Council (GJEPC).

The export mix, however, showed a clear shift towards higher-value finished products. Studded gold jewellery exports surged 51.22% in dollar terms to $642.85 million, while cut and polished diamond exports fell 4.93% to $924.51 million.


The divergence was more pronounced in volumes. Cut and polished diamond exports rose 3.23% to 13.36 lakh carats in August from 12.94 lakh carats a year earlier, suggesting that weaker realisations, rather than a decline in shipments, remain a key pressure point for diamond exporters.

“August’s export performance reflects the resilience and adaptability of India’s gem and jewellery industry,” said Kirit Bhansali, chairman, GJEPC. “The increase in diamond export volumes, along with the sharp growth in studded gold jewellery exports, highlights India’s growing ability to create greater value by transforming precious materials into finished jewellery.”

The sharp rise in studded jewellery exports indicates growing demand for value-added jewellery from overseas markets and points to a gradual shift in India’s export profile from processing and trading precious materials towards finished products.

“This marks an important step in India’s evolution from a major processing centre to a global hub for design, manufacturing and value addition,” Bhansali said.

The trend was offset by a sharp decline in plain gold jewellery exports, which fell 23.90% in dollar terms and 17% in rupee terms to $356.97 million (₹3,408.32 crore).

The decline comes at a time when gold prices have climbed sharply, increasing input costs for exporters. The limited availability of duty-free gold for exporters has added to the pressure on the competitiveness of plain gold jewellery.

Gold prices rose 8.27% month-on-month in August to $4,410.89 per troy ounce from $4,073.92 in July.

Other value-added categories also recorded strong growth. Platinum jewellery exports rose 29.09% in dollar terms to $22.50 million, while polished lab-grown diamond exports increased 28.45% to $125.17 million. Coloured gemstone exports rose 34.40% to $49.07 million.

Silver jewellery was a notable laggard, with exports falling 39.66% to $86.68 million.

For the April-August period, India’s gross gem and jewellery exports rose 2.58% in dollar terms to $11.47 billion, while rupee-denominated exports increased 13.36% to ₹1,09,023.88 crore.

The five-month data also reinforces the shift towards value-added jewellery. Studded gold jewellery exports rose 26.73% in dollar terms to $2.88 billion, while plain gold jewellery exports declined 11.44% to $2.15 billion.

Cut and polished diamond exports fell 7.38% to $4.52 billion during the period, despite the broader resilience in overall exports.

Meanwhile, silver jewellery exports rose 35.57% to $594.86 million, platinum jewellery increased 19.67% to $100.32 million and polished lab-grown diamond exports rose 11.76% to $533.67 million.

The export numbers suggest that while India’s traditional diamond-cutting and plain jewellery businesses remain under pressure from pricing and raw material costs, exporters are increasingly finding traction in finished, studded and alternative jewellery categories.

The shift could help Indian manufacturers capture a larger share of the value generated across the global jewellery supply chain, particularly as international buyers increasingly seek finished jewellery rather than unprocessed or lightly processed products.