India’s gems and jewellery sector ended the financial year on a difficult note, with exports falling sharply in March 2026 as weak global demand, geopolitical stress in West Asia, and broader economic uncertainty combined to hit one of the country’s most important export industries. At the same time, imports moved in the opposite direction, rising strongly as industry players stepped up purchases of raw materials such as gold and diamonds in anticipation of a future recovery in demand.
According to official trade data, India’s gems and jewellery exports dropped 35.23% year-on-year in March 2026 to $1,783.67 million, equivalent to ₹16,597.20 crore. That decline highlights how external pressures are still weighing heavily on international luxury and discretionary spending, especially in categories such as diamonds and gold jewellery, where buyers have become more cautious.
Imports, however, climbed 16.66% during the same month to $2,313.97 million, or ₹21,565.46 crore. This increase suggests that, even in the face of weaker near-term export performance, many businesses in the sector are preparing for better conditions ahead by rebuilding inventories and securing raw materials while supply is available.
For the full financial year from April 2025 to March 2026, overall gems and jewellery exports fell 3.32% to $27,717.40 million. In rupee terms, however, exports managed a modest rise of 0.93%, helped by currency depreciation. Imports over the same period rose 16.99% to $22,830.18 million.
These figures paint a mixed but revealing picture. The sector is clearly under strain from global conditions, but it is not behaving defensively across the board. Instead, businesses appear to be absorbing near-term weakness while positioning themselves for a possible improvement later in the year.
March exposed the sector’s vulnerability to global shocks
The steep March drop shows how sensitive India’s gems and jewellery trade remains to global economic shifts. This industry depends heavily on foreign demand, especially from markets where jewellery and diamonds are closely tied to consumer confidence, gifting cycles, weddings, and discretionary spending.
When global uncertainty rises, this kind of demand often weakens quickly.
That is exactly what appears to have happened in March. Ongoing geopolitical tensions in West Asia, elevated oil prices, softer consumer sentiment, and wider macroeconomic caution all created an environment in which overseas buyers pulled back. Some reduced new purchases. Others chose to liquidate existing inventories rather than place fresh orders.
This matters because the gems and jewellery trade is not driven only by production capacity. It is deeply connected to retailer behavior, wholesaler inventory cycles, and end-consumer demand in international markets. If buyers abroad become uncertain, orders can slow down fast, even when supply chains and domestic production remain functional.
Full-year exports were weaker, but not equally across all segments
For the full year, the overall decline in exports was more moderate than the March shock might suggest. A fall of 3.32% across FY26 shows a sector that weakened, but not one that collapsed. That relative resilience came from strong performance in some categories and more stable trends in others.
Still, the broader trade body made it clear that export performance remained subdued throughout the year. Weak global consumption, higher crude oil prices, and supply chain disruptions linked to geopolitical tension all played a role. In addition, foreign buyers became more defensive, reducing purchases and clearing old inventory in response to macroeconomic instability.
That means the sector’s weakness was not just a one-month event. March may have been especially painful, but the pressure had been building for much of the year.
Diamonds show both weakness and rebuilding behavior
The diamond segment delivered one of the most mixed pictures in the data.
Exports of cut and polished diamonds fell 27.48% year-on-year in March 2026 to $838.75 million. The decline reflects weaker demand in key international markets, cautious buying patterns, and price corrections. For the full financial year, exports in this category dropped 8.52% to $12,159.83 million.
That tells a clear story on the sales side. Demand remains soft, pricing is under pressure, and buyers are unwilling to overcommit.
But on the import side, the pattern was very different. Imports of cut and polished diamonds surged 312.15% in March and rose 28.32% over the full year. That kind of jump strongly suggests inventory rebuilding. It also signals that industry participants see enough medium-term opportunity to justify restocking, especially when supply availability improves.
Meanwhile, rough diamond imports fell 2.67% over the year to $10,478.83 million, reflecting weaker cutting demand and active inventory optimization by manufacturers.
Put together, the diamond segment looks like a market in transition. Export demand is still weak, but parts of the industry are positioning for a better future by selectively rebuilding stocks where they see value or opportunity.
Lab-grown diamonds remain under pressure
The weakness was not limited to traditional diamonds. Lab-grown polished diamond exports also fell 27.56% in March 2026, hit by weak retail demand, pricing pressure, and inventory correction across global markets.
This is notable because lab-grown diamonds had previously been seen as one of the more dynamic areas of the industry. But even segments associated with affordability or newer consumer trends are not immune when global retail demand softens and buyers become more price-sensitive.
In this case, lower prices and inventory adjustments appear to have outweighed any structural demand tailwind. That suggests the slowdown was broad-based rather than confined to legacy categories.
Gold jewellery came under especially heavy pressure
If diamonds had a difficult month, gold jewellery had an even rougher one.
Gold jewellery exports dropped 48.11% in March 2026 to $655.92 million, affected by high gold prices, weaker seasonal demand, and fewer overseas orders. That is a severe contraction and one that reflects the difficult environment for gold-linked products when prices are elevated and consumers are cautious.
For the full year, however, the picture was more stable. Gold jewellery exports slipped by only 0.03% to $11,364.32 million, suggesting that weakness in dollar terms was partly offset by rupee gains.
Within the segment, the split was striking. Plain gold jewellery exports plunged 70.65% in March and fell 7.42% for the year, showing clear pressure from high prices and more cautious buying. In contrast, studded gold jewellery exports declined 19.62% in March but still rose 6.27% over the full year, supported by stronger festive and wedding demand in selected international markets.
That contrast suggests that not all gold jewellery categories are behaving the same way. Simpler, more price-sensitive products appear to be under heavier stress, while more premium or occasion-based categories have held up somewhat better.
Silver and platinum were the year’s standout performers
While gold and diamonds struggled, silver and platinum offered a much brighter picture.
Silver jewellery exports rose 52.21% to $1,467.47 million during FY26, making it one of the strongest-performing segments of the year. This growth was supported by increasing global demand for more affordable alternatives to gold.
That trend makes sense in the current market environment. When gold prices remain high, consumers often look for value without fully giving up the appeal of jewellery purchases. Silver naturally benefits from that rotation.
Platinum jewellery exports also performed strongly, increasing 39.32% to $254.60 million. This appears to reflect rising international demand for more contemporary and premium jewellery categories, especially in markets where design and differentiation matter as much as raw metal pricing.
Meanwhile, coloured gemstone exports remained broadly stable, slipping only 0.71% to $437.31 million. In a year marked by volatility across major segments, that kind of stability stands out.
Rising imports suggest the industry is preparing, not retreating
One of the most interesting elements in the trade data is the rise in imports despite weak export performance. In many industries, falling exports would normally be matched by lower imports as businesses scale back activity. But that is not what happened here.
Instead, imports rose strongly, particularly for raw materials and selected product categories.
According to Colin Shah, Managing Director of Kama Jewelry, this reflects a “diverse global demand landscape,” where silver and platinum continue gaining traction while gold and diamonds remain under pressure. He also said the rise in imports suggests “deliberate stockpiling of raw materials” by industry players ahead of a possible demand recovery in coming months.
That interpretation is important. It suggests the sector is not reading the current weakness as permanent. Businesses appear to be using this period to position themselves, rather than simply retreating.
This does not mean recovery is guaranteed. But it does mean that many participants still expect better conditions later on, enough to justify the cost of rebuilding inventories now.
India’s gems and jewellery sector faced a difficult March, with exports falling 35.23% year-on-year as global demand weakened and geopolitical tensions added further strain. Yet the sharp rise in imports points to an industry that is not standing still. Instead, many businesses appear to be rebuilding inventories and preparing for a rebound once market conditions improve.
The full-year data show a sector under pressure, but also one with clear internal divergence. Diamonds and gold remained weak, especially in March, while silver and platinum delivered strong growth. That split reflects a changing global demand landscape, where affordability, category mix, and consumer caution are reshaping trade patterns.
For now, the sector remains caught between short-term weakness and longer-term expectation. March was a hard landing. But the rise in imports suggests many in the industry are already betting that the next chapter may look better.
