Editor’s Note
India’s gems and jewellery exports rebounded sharply in June, rising 26.5% to $2,212.6 million, driven by gold jewellery and diamonds. However, import data presents a more nuanced picture, with a 10.06% monthly increase but a 5.9% decline in Q1 FY27 year-on-year, reflecting lingering global headwinds.
India’s gems and jewellery exports rose 26.5% in June to $2,212.6 million, snapping a prolonged decline, with gold jewellery and diamonds leading the recovery.
On the import side, the picture is a bit more complicated. Gross imports grew 10.06% in June to reach $1,720.6 million, even as the broader Q1 FY27 period saw imports decline 5.9% to $4,974.8 million year-on-year. Given the global economic headwinds the sector has been dealing with for a while now, this shift toward positive territory stands out as a genuinely encouraging sign.
Cut and polished diamonds had a strong June, with exports climbing to $846.7 million, up 8.7% from $778.8 million a year earlier. The quarterly picture was a bit softer, with April-June exports in this category easing 4.1% to $2,720.2 million.
Volume told a more positive story, though. Export volume of cut and polished diamonds for the April-June period rose 8.9% to 39.8 lakh carats, with a per-carat value of $681.7 for the quarter. Analysts see this as a sign that international demand for diamond jewellery is coming back, pointing to potentially strong holiday season sales ahead, along with a growing preference among traders for operating through Special Economic Zones rather than the domestic tariff area. Most analysts expect this positive sentiment to carry into the October-December quarter.
Not every part of the diamond pipeline is bouncing back just yet. Gross imports of rough diamonds came in at $700.3 million in June, and fell 32.4% for the quarter on a year-on-year basis. In volume terms, June’s rough diamond imports eased 8.6% to 66.9 lakh carats.
The continued softness here largely comes down to strategy rather than weak demand alone. Indian jewellery manufacturers appear to be working through existing inventory before committing to fresh purchases, a cautious approach given how volatile overseas demand has been. Analysts expect that as consumer demand picks up, it should naturally feed back into stronger rough diamond imports down the line.
One category that’s clearly finding its footing is finished lab-grown diamonds, which industry experts describe as getting a strong response in international markets. With consumers leaning toward more price-conscious choices amid ongoing uncertainty, lab-grown diamonds have emerged as an appealing alternative to natural stones for budget-minded buyers, a trend experts expect to keep strengthening.
Gold jewellery turned out to be one of the biggest bright spots in June, with exports surging 54.5% to $1,087.7 million, driven largely by studded jewellery. Plain gold jewellery had a more mixed quarter by comparison. Silver and platinum jewellery also had a solid showing, posting export gains of 20 to 27% for the first quarter, rounding out what looks like a genuinely broad-based recovery across the sector.