India's gem and jewellery exports grew 26.51% year-on-year to $2.21 billion in June, driven by strong demand and lower gold prices. While gold jewellery exports saw a sharp rise, the sector faces lingering challenges regarding GST on gold imports. This trend highlights the sector's recovery potential after a stable first quarter.
Detailed Coverage
India’s gem and jewellery industry witnessed a notable rebound in June 2026, with gross exports increasing by 26.51% compared to the same month last year, reaching a total of $2.21 billion. According to data from the Gem and Jewellery Export Promotion Council (GJEPC), this growth was primarily supported by a surge in demand across international markets and a decline in international gold prices, which helped Indian exporters remain price-competitive.
Product Performance and Growth Drivers
Specific segments drove this monthly performance. Gold jewellery exports saw a substantial increase of 54.50%, reaching $1.09 billion. Within this category, studded gold jewellery performed particularly well, recording an 85.35% jump. Additionally, the industry saw significant growth in the lab-grown diamond segment, which grew by 52.25%, and platinum jewellery, which rose by 34.77%. Cut and polished diamonds also saw a modest increase of 8.71%.
However, not all segments shared in this recovery. Both silver jewellery and coloured gemstone exports experienced declines during the month, indicating uneven demand across the broader product portfolio. Despite the strong June figures, the sector's performance for the April-June quarter remained relatively flat, with gross exports reaching $6.61 billion, marking a marginal 0.04% increase in dollar terms.
Impact of Gold Prices and Regulatory Hurdles
The 10.28% month-on-month decrease in international gold prices served as a significant tailwind, allowing exporters to manage raw material costs more effectively. While this price benefit, combined with participation in major international exhibitions in markets like Kuwait and Sharjah, supported the export jump, the sector continues to navigate regulatory challenges. A technical issue regarding GST applicability on gold imports by RBI-notified nominated agencies remains a point of concern, as it affects the seamless availability of gold for export-oriented manufacturing.
Future Outlook and Monitoring
Looking ahead, the industry is optimistic that ongoing efforts to diversify markets and the potential impact of trade agreements, such as the India-UK CETA, will provide further momentum. For investors and industry observers, the key monitorables include the sustainability of this export growth, the impact of volatile precious metal prices on margins, and any potential resolution of the GST-related regulatory hurdles that currently constrain raw material accessibility. The sector's ability to maintain its competitiveness in global markets while navigating these logistical and regulatory constraints will determine its performance in the coming quarters.