India's gem and jewellery exports climbed 9.43% to $2.95 billion in September 2026, driven by strong demand for studded gold and lab-grown diamonds. However, the sector faces pressure from high gold prices, which have dampened plain gold jewellery shipments. Investors should note how different product mixes impact company performance amid volatile global demand.
India’s gem and jewellery sector posted a 9.43% year-on-year growth in exports for September 2026, with total shipments reaching $2.95 billion. This monthly uptick brings the cumulative performance for the first half of the current fiscal year (April–September) to $14.30 billion, reflecting a modest growth of 3.07% in dollar terms. The sector is currently navigating a period of contrasting demand trends across its key product categories.
Studded Gold and Lab-Grown Diamonds Drive Demand
The recovery is not uniform across all segments. Growth has been primarily anchored by studded gold jewellery, which saw exports surge by over 31% in the first half of the fiscal year, reaching $3.69 billion. Similarly, the lab-grown diamond segment is carving out a larger footprint, with exports rising 17.08% to $685.10 million during the same period. These categories have benefited from a combination of changing consumer preferences and improved trade access, including reduced tariffs in the United States and new trade agreements with the UK, which have helped domestic exporters capture better margins.
High Gold Prices Weigh on Plain Jewellery Exports
While studded items are thriving, traditional plain gold jewellery is facing a significant headwind. Exports in this segment declined by 8.81% to $2.53 billion during the first half of the year. The primary driver of this slowdown is the sharp rally in global gold prices, which increased by approximately 31.17% in dollar terms between April and September 2026. This price surge has made plain gold jewellery costlier for international buyers, leading to a decline in volume. Furthermore, exporters are contending with difficult market conditions in the Middle East, a historically critical destination for plain gold items, which continues to be a point of concern for manufacturers with high exposure to that region.
Diamond Segment Shifts and Currency Factors
The cut and polished diamond segment, a major component of India’s export basket, presents a complex picture. While the total value of exports in this category declined by roughly 7% in the first half of the fiscal year, volume growth has remained positive at over 4%. This indicates that while the market is moving higher quantities of goods, it is doing so at lower price points or facing pricing pressure. Currency fluctuations have provided some relief, with the depreciation of the rupee against the dollar helping to protect export earnings in domestic currency terms. In September alone, exports grew 18% to ₹28,157.55 crore when measured in rupees, compared to the 9.43% growth in dollar terms.
Moving forward, the industry’s ability to sustain this export momentum will depend on several variables. Investors and industry participants will be closely monitoring gold price stability, which directly dictates demand for plain jewellery. Additionally, the ability of exporters to diversify their market reach beyond the currently constrained Middle Eastern corridors and leverage favorable trade policies will be essential to maintaining margins and volume growth in the coming quarters.