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India's gem and jewellery exports declined in the financial year 2025-26, impacted by tariff-related uncertainties in key markets such as the United States, even as countries like the UAE, Hong Kong, Australia and Canada demonstrated strong growth, reflecting a shift towards market diversification.
According to data released by the Gem and Jewellery Export Promotion Council, exports stood at USD 27.72 billion in FY26, registering a decline of 3.32 per cent year-on-year. In rupee terms, however, exports rose marginally by 0.93 per cent to Rs 2,44,827.26 crore compared to Rs 2,42,559.39 crore in the previous financial year. The decline was largely attributed to evolving tariff regimes in the US, along with global inventory corrections, subdued discretionary demand, and increasing competition from alternative luxury segments. Despite the overall decline, several markets recorded strong growth. Exports to the UAE grew over 22 per cent during April-February 2026, although full-year growth moderated to 10.52 per cent due to emerging tensions in West Asia, with exports reaching USD 8.70 billion. Australia also saw robust growth of 38.33 per cent, highlighting the role of free trade agreements in supporting export expansion. Kirit Bhansali, Chairman of the council, said the sector is undergoing a structural reset with reduced dependence on a single market. "Exporters have actively diversified into new geographies, strengthened value-added segments, and adapted swiftly to evolving global trade dynamics," he said. Among product segments, cut and polished diamonds remained the largest category, contributing 43.9 per cent of total exports at USD 12.16 billion, though declining by 8.52 per cent year-on-year. Gold jewellery exports remained largely stable at USD 11.36 billion. Within this, plain gold jewellery exports declined by 7.42 per cent to USD 4.84 billion due to elevated gold prices, while studded gold jewellery exports grew by 6.27 per cent to USD 6.52 billion, supported by demand for value-added products. Silver jewellery exports recorded strong growth, surging 52.21 per cent to USD 1.47 billion, driven by rising affordability and global demand. Platinum jewellery exports also grew by 39.32 per cent to USD 254.60 million, reflecting increasing traction in premium segments. Polished lab-grown diamond exports declined by 10.55 per cent to USD 1.13 billion, although volumes increased, indicating price corrections. At the same time, gold jewellery studded with lab-grown diamonds rose by 31.30 per cent to USD 1,425.51 million. Regionally, the Western Region led exports with USD 18,579.41 million, followed by Gujarat with USD 2,400.61 million. (ANI)
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