While exports of diamonds, gold jewellery, and lab-grown diamonds declined sharply, imports rose as the industry stocked up on raw materials in anticipation of a recovery.
Gems and jewellery exports from India plunged 35 per cent to $1.78 billion in March, as demand dipped due to the ongoing Iran war and disruptions in trade flows.
In contrast, imports increased by 17 per cent to $2.31 billion as the industry purchased additional raw materials, including gold and diamonds, in anticipation of a revival in demand, according to data from the Gem and Jewellery Export Promotion Council.
Cut and polished diamond exports were down 27 per cent at $839 million ($1.16 billion) due to weak global demand and a sharp drop in prices. The sudden price drop has led consumers to reduce fresh purchases in anticipation of further declines.
With the fall in prices, the industry’s cut and polished diamond imports increased over four times to $211 million ($51 million) on inventory rebuilding and an anticipated recovery in demand across key markets.
LGD shipments too down
Gold jewellery exports were down 48 per cent to $656 million ($ 1.26 billion) as high gold prices reduced overseas orders amid inventory adjustments and global economic uncertainty.
Polished lab-grown diamond (LGD) exports were down 28 per cent to $96 million ($132 million) due to weaker global retail demand, increased price competition and inventory correction in key export markets, leading to reduced shipment volumes.
Colin Shah, MD, Kama Jewellery, said it was a mixed bag for gemstone and jewellery exports, with silver and platinum jewellery showing robust growth owing to changing consumer preferences, but traditional metals such as gold jewellery, diamonds, and synthetic diamonds coming under pressure.
The rise in imports suggests deliberate stockpiling of raw materials in anticipation of a future revival in demand, he said.
Subdued fiscal
Gem and jewellery exports in FY’26 were down 3 per cent at $27.72 billion. Conversely, imports increased 17 per cent to $22.83 billion.
While global demand remained weak, imports increased substantially due to an industry-wide build-up of gold and diamond inventories.
Cut and polished diamond exports dipped 9 per cent to $12.16 billion ($13.29 billion) due to sustained weak demand and ongoing price corrections in the diamond industry.
Rough diamond imports were down 3 per cent at $10.48 billion ($10.77 billion) due to subdued global cutting demand and inventory optimisation.
Despite high prices, gold jewellery exports declined marginally to $11.36 billion ($11.37 billion), reflecting steady underlying demand offset by price amid global market fluctuations.
Silver jewellery exports increased 52 per cent to $1.47 billion due to strong global demand for affordable jewellery and higher consumer preference for silver as a cost-effective alternative to gold.
Published on April 14, 2026
