India’s gem and jewellery exports declined 6% to USD 4.27 billion in Apr-May 2026, dragged down by a 40.11% fall in plain gold jewellery shipments amid supply issues. However, silver jewellery exports emerged as a bright spot, surging over 172%.
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 (GJEPC).
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.
Gold Jewellery Exports Nosedive
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.
Impact on Gold Consumption
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.”
Silver Jewellery Exports Shine
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.
Rising Input Costs and Policy Hurdles
“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)
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