Editor’s Note
**Editor’s Note:** India’s gem and jewellery exports surged 27% to $2.21 billion in June, driven by strong demand for gold and lab-grown diamonds, signaling a robust sector recovery after a period of sluggish growth.
India’s gem and jewellery exports brought good news in June, recording a robust 27% increase to reach $2.21 billion. The surge was primarily driven by rising demand for gold and lab-grown diamonds.
India’s gem and jewellery sector emerged with a strong recovery in June. Total exports reached $2.21 billion, a 27% increase compared to the same period last year. This provides significant relief for an industry that had been grappling with sluggish export growth and fluctuating global demand. Clearer duty structures in major markets like the US and recent free trade agreements have contributed to this recovery.
Segment-wise, gold jewellery exports surged 55% to $1.09 billion. Lower gold prices made it more affordable for international buyers. Meanwhile, exports of cut and polished diamonds increased 9% to $847 million. Notably, rough diamond imports fell 8% to $64 million, indicating that domestic manufacturers are focusing on inventory management rather than stockpiling.
Polished lab-grown diamonds also contributed significantly to the sector’s growth, with exports jumping 52% to $101 million. These diamonds are rapidly gaining popularity among consumers due to their lower cost compared to natural diamonds, especially amid global economic uncertainty. Consumers prioritizing affordability without compromising style is further strengthening this trend.
While June’s figures are encouraging, the sector remains vigilant about global economic conditions. Geopolitical tensions could impact supply chains or consumer sentiment in export markets. However, the outlook for the coming months remains stable. The industry is preparing for the holiday season in Western countries and India’s festive season, which are crucial for jewellery demand. For investors, the sustainability of this growth will depend on how companies maintain their profit margins amid raw material price fluctuations and whether the export momentum continues through the December quarter. Monitoring these export figures will be important.