Despite a challenging year for global luxury markets, India’s gem and jewellery sector has demonstrated remarkable resilience, recording total exports of ₹2,44,827.42 crore ($27.72 billion) for the 2025-26 fiscal year.
Data released by the Gem & Jewellery Export Promotion Council (GJEPC) highlights a sector successfully navigating high interest rates and geopolitical tensions in traditional markets like the US and Europe. While the rupee value saw a marginal growth of 0.93%, the industry’s ability to maintain high volume in a “headwind” economy is being hailed as a significant victory for Indian craftsmanship and trade strategy.
The Drivers of Growth
While overall growth remained steady, specific segments saw explosive demand:
-
Silver Jewellery: Emerging as the star performer, silver exports surged as global consumers shifted toward more affordable luxury.
-
Studded Jewellery: High-value pieces continued to find strong buyers in emerging markets, offsetting the slowdown in loose diamond shipments.
-
Lab-Grown Diamonds (LGD): The LGD sector maintained its upward trajectory, further establishing India as a global hub for sustainable gemstone technology.
Strategic Shifts and FTAs
The industry’s stability is largely attributed to a strategic pivot toward new markets. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the Australia-India ECTA have played pivotal roles, allowing Indian exporters to bypass traditional bottlenecks.
“The industry has shown incredible grit,” noted a trade analyst. “By diversifying into the Middle East and Southeast Asian markets, Indian exporters have insulated themselves from the volatility seen in Western retail cycles.”
Looking Ahead
Despite the positive rupee-term figures, the industry faces ongoing challenges, including high gold prices and a 3.32% decline in overall dollar terms. However, with the government’s continued support for Free Trade Agreements (FTAs) and the promotion of “Brand India” at international exhibitions, the sector is well-positioned for a stronger rebound in FY27.
