India’s gems and jewellery exports declined 2.49% year-on-year in May due to high gold prices and supply constraints, according to GJEPC. | Photo Credit: -

India’s gems and jewellery exports declined by 2.49 per cent year-on-year in May to USD 2,047.89 million (Rs 19,573.96 crores) following high gold prices and supply constraints, the Gem and Jewellery Export Promotion Council (GJEPC) said.

Exports were at USD 2,100.21 million (Rs 17,896.16 crores) for the same period last year, according to GJEPC data.

The total gold jewellery exports declined by 14.75 per cent to USD 758.44 million (Rs 7,247.76 crores) in May compared to USD 889.63 million (Rs 7,582.07 crores) in the same period last year.

The decline was primarily driven by a sharp contraction in Plain Gold Jewellery exports, which fell 14.75 per cent to USD 758.44 million in May, GJEPC said in a statement.

The sector has also been facing challenges arising from elevated gold prices, limited availability of gold for export production and regulatory bottlenecks affecting the supply of gold through banking channels, it added.

Gold availability and prices weigh on exports

GJEPC chairman Kirit Bhansali said, “However, Studded Gold Jewellery exports grew 1.79 per cent year-on-year to USD 463.57 (Rs 4,429.56 crores) during May, compared to USD 472.02 (Rs 4,024.23 crores) in the corresponding period last year. This growth reflects the positive impact of India’s Free Trade Agreements (FTAs), which are enhancing market access and strengthening the competitiveness of Indian jewellery exports in key markets.”

However, he said, the main concern remains decline in shipments of Plain Gold Jewellery exports and one of the key reasons for this decline has been the tightening in gold imports, which has affected the availability of gold for export manufacturing.

“We have taken up this matter with the government and are hopeful of a positive resolution,” he added.

The impact is evident in gold consumption for export production, which declined to an estimated 11 tonnes during April-May 2026 from around 14 tonnes estimated in the corresponding period last year, a reduction of nearly 21.4 per cent, Bhansali said.

“We have also noted with concern that gold availability from banks has been affected due to certain regulatory bottlenecks, creating additional challenges for exporters. These issues have been further compounded by a sharp rise in gold prices. The average gold price during April-May 2026 increased to USD 4,723.88 per troy ounce from USD 3,242.48 per troy ounce in April-May 2025, representing a year-on-year increase of 45.69 per cent,” he said.

Diamond and silver jewellery exports show growth

Meanwhile, Cut and Polished diamonds shipments grew by 3.31 per cent to USD 980.73 million (Rs 9,378.53 crores) in May compared to USD 949.30 million (Rs 8,086.48 crores) for the same period last year.

Exports of Polished Lab Grown Diamonds in May witnessed a growth of 25.99 per cent at USD 101.50 million (Rs 970.27 crores) against USD 80.56 million (Rs 686.84 crores) in the corresponding month of 2025.

Silver jewellery exports went up by 14.73 per cent during May to USD 97.39 million (Rs 928.02 crores) compared to USD 84.88 million (Rs 724.78 crores) in the same month last year.

Published on June 17, 2026