Gem and Jewellery Exports Experience Modest Increase Amid Rising Gold Prices

The latest data reveals that gold jewellery exports from India experienced a significant increase, rising 9% in June to reach ₹9,972 crore (approximately $1.04 billion). This uptick is attributed to robust demand from markets such as the UAE, Hong Kong, Singapore, and the UK. Overall, gem and jewellery exports saw a slight rise last month, totaling $2.35 billion, a marginal increase from $2.34 billion last year. In rupee terms, this represents a more pronounced uplift of 12%, primarily due to a weaker rupee. For the first four months of the fiscal year, exports between April and July measured $9.17 billion (₹87,078 crore), indicating a 2% growth compared to the same period last year.

This growth in gold jewellery exports can offer several implications for the common citizen and the broader market. For consumers, an increase in exports can be a sign of rising demand, potentially leading to more competitive pricing and improved availability of gold jewellery. Additionally, the resilience displayed by India’s gem and jewellery sector, particularly in value-added segments, may bolster employment in this industry, providing livelihoods to countless artisans and workers. However, the decline in cut and polished diamond exports, down 18%, signals potential challenges and underscores the need for diversification within the sector.

Looking forward, the long-term outlook for the gem and jewellery industry appears cautiously optimistic, particularly with the government’s introduction of the Taxation and Other Laws (Amendment) Bill 2026. This bill could enhance India’s position as a global hub for diamond trading by offering a 15-year income tax exemption for foreign companies involved in rough diamond trading through Special Notified Zones, which may reduce import dependency and create a more favorable business environment. The easing of gold prices is expected to further stimulate demand in key markets, providing a supportive backdrop as the industry navigates various global challenges.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)