India’s gems and jewellery exports declined by 2.49% year-on-year in May, as persistently high gold prices dampened demand across key international markets. The slowdown reflects the challenges faced by exporters amid elevated raw material costs and cautious purchasing by global buyers.
Industry data showed that rising gold prices continued to influence consumer sentiment and order volumes, particularly in major export destinations where retailers and wholesalers have adopted a more conservative approach to inventory replenishment. The higher cost of precious metals has also increased production expenses for manufacturers, affecting competitiveness in price-sensitive markets.
Exporters noted that volatility in global bullion markets and economic uncertainty in several regions have contributed to softer demand for jewellery products. While premium and branded segments have shown resilience, demand for mass-market gold jewellery has remained under pressure due to affordability concerns.
Despite the decline in May exports, industry stakeholders remain optimistic about long-term growth prospects, supported by India’s strong manufacturing base, skilled workforce, and established position in the global gems and jewellery trade. Exporters are also focusing on product diversification, value-added offerings, and new market opportunities to offset the impact of fluctuating gold prices.
Market participants will continue to monitor gold price trends, currency movements, and consumer demand patterns in key markets, as these factors are expected to play a crucial role in shaping export performance in the coming months. The sector hopes that greater price stability and improved global economic conditions will help revive demand and support export growth later in the year.