Gem and Jewellery Export Promotion Council reports exports at $27.72bn, down 3.3% YoY.
Sharp 45% drop in US demand weighed heavily on the sector.
UAE overtakes US as top export market, highlighting diversification shift.
India's gem and jewellery sector closed the fiscal year 2025–26 with exports at $27.72bn, registering a decline of 3.32% in dollar terms compared to the previous year, as per data released by the Gem And Jewellery Export Promotion Council (GJEPC) today.
This came after United States, once the industry's most reliable growth engine, effectively imploded as a destination. Exports to the US fell by a staggering 44.92%, from $9.24bn to $5.09bn, the sharpest single-market collapse in the sector's recent memory.
1 April 2026
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The blow was compounded by an 8.52% drop in cut and polished diamonds, the export basket's largest constituent, which still accounts for nearly 44% of total outflows. For an industry that has long built its fortunes on American appetite for diamonds, the numbers are sobering.
Lab-grown diamond prices, too, continued correcting in FY 2025–26, with polished lab-grown diamond exports falling 10.55% in dollar terms even as volumes rose.
The plain gold jewellery segment added its own drag. Elevated gold prices, which have trended near multi-year highs through much of 2024–25, weighed on demand, particularly in price-sensitive markets. Plain gold jewellery exports declined 7.42% year-on-year to $4.84bn.
Sectors That Held
Gold jewellery exports — including both plain and studded segments — remained largely stable at US$ 11.36 billion, registering a marginal decline of just 0.03% year-on-year. Within this, studded gold jewellery was the standout performer, growing 6.27% to $6.52bn.
Silver jewellery was the year's breakout category. Exports surged 52.21% to $1.47bn, driven by rising silver prices, strong global demand, and an affordability appeal that is gaining traction among growing middle-class consumer bases in emerging markets.
Platinum jewellery, still a comparatively small segment, grew 39.32% to $254.60mn, reflecting increasing global acceptance and demand in niche premium segments.
Diversification Dividend
The most consequential shift in FY 2025–26 is geographic. The UAE, now the top destination with exports of $8.70bn, grew 10.52% for the full year.
“Free Trade Agreements with the UAE and Australia have played a pivotal role in supporting export diversification and sustaining growth momentum," said Kirit Bhansali, Chairman, GJEPC.
Exports to the UAE had been tracking above 22% growth through April–February 2026; it was only the emerging tensions in West Asia in the closing weeks of the financial year that moderated the headline number. The India-UAE Comprehensive Economic Partnership Agreement, operational since 2022, has materially reshaped trade flows in this corridor, and GJEPC credits it explicitly for supporting diversification.
“At the same time, markets like Australia have shown robust growth of 38.33%, reinforcing the importance of FTA-led market expansion in building a more resilient and broad-based export ecosystem. The anticipated implementation of FTAs with the UK and EU this year is expected to further support the growth of India’s gem and jewellery exports," Bhansali added.
On the domestic production side, the Western Region — comprising Mumbai and Mumbai suburbs — continued to lead with exports of $18,579.41mn. The Gujarat region, a key centre for diamond processing and manufacturing, recorded exports of $2,400.61mn, reflecting its steady contribution to the sector.
