India's gems and jewellery exports climbed 26.5% to $2.21 billion in June 2026, driven by strong demand for gold jewellery and lab-grown diamonds. Despite this monthly recovery, export growth for the April-June quarter remained flat at 0.04% due to global economic pressures. Investors should track international festive demand and potential benefits from new trade agreements to gauge future sector stability.
India’s gems and jewellery industry witnessed a sharp recovery in June 2026, with gross exports increasing by 26.51% to $2.21 billion compared to the same month last year. This performance stands out after a long stretch of weak global demand that had previously hampered export growth.
Segment Performance and Drivers
Gold jewellery exports were the primary growth driver for the month, jumping 54.5% to reach $1.09 billion. Within this category, studded gold jewellery recorded a robust growth of 85.35% to $633.97 million, while plain gold jewellery exports rose by 25.34% to $453.76 million.
Another significant contributor to the sector's monthly growth is the lab-grown diamond segment. Exports of polished lab-grown diamonds surged by 52.25% to $101.35 million in June. This segment has increasingly become a preferred, cost-effective alternative to natural diamonds, particularly during periods of restricted consumer spending in international markets. For the entire April-June quarter, lab-grown diamond exports maintained a positive trend with a 14.92% increase.
Quarterly Trends and Sector Challenges
Despite the positive signals from June, the broader picture for the April-June 2026 quarter shows a different trend. Total gross exports for the three-month period grew by only 0.04% to $6.61 billion, indicating that the sector is still recovering from a slow start earlier in the fiscal year. Additionally, gross imports for the sector declined by 5.9% to $4.97 billion during the same quarter, which may reflect cautious inventory management by manufacturers amid global uncertainty.
The industry continues to face pressures from fluctuating consumer spending in key export markets, geopolitical tensions, and general economic instability. Because the Indian gems and jewellery sector is highly dependent on exports to Western countries, performance in the coming months will likely depend on consumer sentiment during upcoming international holiday seasons.
Moving forward, the Gem & Jewellery Export Promotion Council data suggests that the sector's recovery will be influenced by how effectively manufacturers can tap into new markets through recently signed free trade agreements. Investors monitoring listed companies in this space, such as Titan Company or Kalyan Jewellers, will likely track whether this monthly uptick in export volumes translates into improved quarterly margins and sustained demand through the Indian festive season, which typically boosts domestic consumption and inventory requirements.