India’s gem and jewellery exports grew 27% to $2.21 billion in June, supported by rising demand for gold and lab-grown diamonds. This growth signals a recovery for the sector, which had faced pressure due to global demand shifts and inventory management challenges.
India’s gem and jewellery sector reported a notable recovery in June, with total exports reaching $2.21 billion. This 27% increase represents a significant improvement for the industry, which had been navigating a period of slower export growth and fluctuating global demand. The recovery is supported by clearer duty structures in major markets like the United States and the benefits from recent free trade agreements.
Segment Performance and Consumer Trends
The growth was broad-based across key segments. Gold jewellery exports saw a strong 55% rise to $1.09 billion. This surge was largely driven by a reduction in gold prices, which improved affordability for international buyers. Meanwhile, cut and polished diamond exports recorded a 9% increase, reaching $847 million. Interestingly, imports of rough diamonds declined by 8% to $64 million, suggesting that domestic manufacturers are focusing on efficient inventory management rather than building excessive stockpiles.
Lab-Grown Diamonds and Market Shifts
A major contributor to the sector's performance was the segment for polished lab-grown diamonds, which saw exports jump 52% to $101 million. This category continues to gain traction as consumers increasingly opt for cost-effective alternatives to natural diamonds, especially during periods of global economic uncertainty. The move toward lab-grown stones is a structural shift, as more consumers prioritize affordability without compromising on the aesthetics of jewellery.
Industry Outlook and Risks
While the June export data shows a positive trajectory, the sector continues to monitor global economic conditions. Geopolitical tensions remain a factor that could impact supply chains or consumer sentiment in major export markets. However, the outlook for the coming months remains steady, with the industry preparing for the Western holiday season and the start of the Indian festive period. These events are traditionally key drivers for jewellery demand. For investors, the sustainability of this growth will depend on how successfully companies can maintain profit margins despite fluctuating raw material prices and whether the current export momentum can be sustained through the December quarter. Monitoring these export figures, along with updates on international demand and duty structures, will be important for tracking the long-term health of the gem and jewellery export trade.