India’s Jewellery Exports Rise 3.66% in H1 FY26, Gold Leads Growth

India’s gem and jewellery sector reported a modest recovery between April and September 2025, with total exports rising 3.66% to US $14.09 billion, compared to US $13.60 billion in the same period a year ago, according to data from the Gem & Jewellery Export Promotion Council (GJEPC).

September alone saw a 6.55% increase, taking exports to US $2.91 billion, hinting at improved market sentiment after a volatile first quarter.

Steady Export Growth Amid Global Challenges

Kirit Bhansali, Chairman of GJEPC, said demand has strengthened across key markets such as the UAE, Hong Kong, and the UK, aided by the upcoming festive and wedding seasons in India and holiday demand globally. He expects this trend to continue through the busy retail quarter, as per news reports.

US Market Faces Tariff Pressure

While overall exports rose, shipments to the United States a major market faced significant headwinds.

• Total exports to the US between April and September 2025 dropped 40.28% to US $2.77 billion.
• Exports of cut and polished diamonds to the US fell 53.62% to US $1.17 billion.

GJEPC is working closely with the government to seek relief measures for exporters impacted by the tariff environment. Recommendations include:

• Deferring interest on working capital loans
• Extending the Interest Equalisation Scheme
• Allowing sales from SEZs to the domestic market
• Providing liquidity support for MSMEs

Support for workers is also being considered, including concessional loans, education grants, and temporary health coverage under Ayushman Bharat.

Gold Jewellery Drives Growth

Gold jewellery exports were a major contributor to overall growth:

• Plain and studded gold jewellery exports rose 21.97% to US $5.79 billion (vs US $4.75 billion last year).
• Plain gold jewellery exports surged 46.74% to US $2.80 billion, driven by stronger Middle East demand and higher gold prices.
• Studded gold jewellery increased 5.35% to US $3 billion.

The UAE remained a key destination, with exports rising 61.37% to US $3.19 billion. Exports to the UK grew 17.01%, while Saudi Arabia saw a sharp 124.10% rise, indicating a growing appetite for Indian jewellery in Gulf markets.

Average global gold prices increased around 36% year-on-year, supporting higher export values.

Diamond Exports Under Pressure, But Showing Signs of Stabilisation

Exports of cut and polished diamonds stood at US $6.25 billion during April–September 2025, down 9.57% from the previous year.

• Exports to the US dropped 53%.
• Shipments to the UAE rose 65.23% to US $1.30 billion, reinforcing Dubai’s position as a key trading hub.
• Hong Kong saw an 18.08% increase to US $2.06 billion as festive demand picked up.

Read More: Gold Rate Today in India: Chennai, Bangalore, Hyderabad, Kolkata, Mumbai, New Delhi – Oct 14, 2025.

Conclusion

With the global retail sector entering its peak festive quarter, GJEPC expects continued export momentum. India’s reputation for craftsmanship and its strong presence in major markets are expected to support the sector through the remainder of FY26.

However, tariffs in the US and fluctuating global demand remain key factors to watch in the coming months.

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