India’s Gems and Jewellery Exports Decline 2.49% in May 2026, Amid High Gold Prices

India's gems and jewellery exports recorded a decline in May 2026 as elevated gold prices and limited availability of the precious metal affected overseas shipments, as per news reports.  

While gold jewellery exports weakened, categories such as cut and polished diamonds, lab-grown diamonds and silver jewellery registered growth during the month. 

Gold Jewellery Exports Weigh on Overall Performance 

According to the Gem and Jewellery Export Promotion Council, total gems and jewellery exports stood at $2,047.89 million (₹19,573.96 crore) in May, down 2.49% from $2,100.21 million (₹17,896.16 crore) a year earlier. 

The biggest drag came from gold jewellery exports, which declined 14.75% to $758.44 million (₹7,247.76 crore) from $889.63 million (₹7,582.07 crore) in the corresponding month last year. 

The industry attributed the decline to higher gold prices, restricted availability of gold for export manufacturing, and regulatory bottlenecks affecting supply through banking channels. 

Studded Jewellery and Diamond Exports Show Resilience 

Gem and Jewellery Export Promotion Council Chairman Kirit Bhansali said, “Studded Gold Jewellery exports grew 1.79% year-on-year.  

This growth reflects the positive impact of India's Free Trade Agreements.” Studded gold jewellery exports reached $463.57 million (₹4,429.56 crore) in May. 

He also noted that “the main concern remains decline in shipments of Plain Gold Jewellery exports”, adding that tighter gold imports have affected the availability of raw material for export production. 

Meanwhile, cut and polished diamond exports increased 3.31% to $980.73 million (₹9,378.53 crore), while polished lab-grown diamond exports jumped 25.99% to $101.50 million (₹970.27 crore). Silver jewellery exports also rose 14.73% to $97.39 million (₹928.02 crore). 

Gold Prices and Supply Challenges 

The council estimated that gold consumption for export production declined from around 14 tonnes in April-May 2025 to 11 tonnes during the same period in 2026, representing a reduction of nearly 21.4%. 

According to Bhansali, the average gold price during April-May 2026 climbed to $4,723.88 per troy ounce, compared with $3,242.48 per troy ounce a year earlier, an increase of 45.69%.  

He also highlighted concerns over reduced gold availability from banks because of regulatory bottlenecks, which have added to the challenges faced by exporters. 

Read More: India Gold Imports Surge 34% to $3.41 Billion, While Silver Imports Decline 86.65% in May 2026! 

Conclusion 

India's gems and jewellery exports declined in May as pressure on gold jewellery shipments offset gains in diamonds and silver jewellery, with elevated gold prices and supply constraints continuing to influence the sector.   

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