India gems and jewellery exports dip in May as high gold prices and supply constraints hit, GJEPC says

India’s gems and jewellery exports slipped 2.49 per cent year-on-year in May. Shipments totalled USD 2,047.89 million, or Rs 19,573.96 crores, GJEPC said. Exports had stood at USD 2,100.21 million, or Rs 17,896.16 crores, in May last year. The council linked the easing trend to high gold prices and supply limits.

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The Gem and Jewellery Export Promotion Council said exporters also faced other hurdles. These included restricted gold supply for export work and delays in the banking channel. The council cited regulatory bottlenecks as a key issue. It said these factors reduced the availability of gold needed for manufacturing export orders.

Gems and jewellery exports: gold jewellery shipments fall in May

Total gold jewellery exports dropped 14.75 per cent to USD 758.44 million, or Rs 7,247.76 crores, in May. The same month last year recorded USD 889.63 million, or Rs 7,582.07 crores. GJEPC said the fall was mainly due to weaker plain gold jewellery exports. It reported the same 14.75 per cent decline for this segment.

GJEPC chairman Kirit Bhansali said, However, Studded Gold Jewellery exports grew 1.79 per cent year-on-year to USD 463.57 Rs 4,429.56 crores during May, compared to USD 472.02 Rs 4,024.23 crores in the corresponding period last year. This growth reflects the positive impact of Indias Free Trade Agreements FTAs, which are enhancing market access and strengthening the competitiveness of Indian jewellery exports in key markets.

Gems and jewellery exports: gold supply constraints and prices

However, he said, the main concern remains decline in shipments of Plain Gold Jewellery exports and one of the key reasons for this decline has been the tightening in gold imports, which has affected the availability of gold for export manufacturing.We have taken up this matter with the government and are hopeful of a positive resolution, he added.

The impact is evident in gold consumption for export production, which declined to an estimated 11 tonnes during April-May 2026 from around 14 tonnes estimated in the corresponding period last year, a reduction of nearly 21.4 per cent, Bhansali said.We have also noted with concern that gold availability from banks has been affected due to certain regulatory bottlenecks, creating additional challenges for exporters.

These issues have been further compounded by a sharp rise in gold prices. The average gold price during April-May 2026 increased to USD 4,723.88 per troy ounce from USD 3,242.48 per troy ounce in April-May 2025, representing a year-on-year increase of 45.69 per cent, he said. GJEPC has linked the price rise to tighter margins and planning challenges.

Gems and jewellery exports: diamonds and silver show growth

Not all categories moved lower in May, according to GJEPC data. Cut and Polished diamonds shipments rose 3.31 per cent to USD 980.73 million, or Rs 9,378.53 crores. In the same month last year, shipments were USD 949.30 million, or Rs 8,086.48 crores. The council recorded gains across some diamond lines.

Exports of Polished Lab Grown Diamonds in May witnessed a growth of 25.99 per cent at USD 101.50 million Rs 970.27 crores against USD 80.56 million Rs 686.84 crores in the corresponding month of 2025. Silver jewellery exports also increased 14.73 per cent to USD 97.39 million, or Rs 928.02 crores, from USD 84.88 million, or Rs 724.78 crores.

Overall, GJEPC’s May figures showed mixed performance across the sector. The headline decline followed a steep fall in gold jewellery exports, especially plain gold jewellery. At the same time, studded gold jewellery, diamonds and silver jewellery recorded growth. The council said supply limits, banking hurdles and higher gold prices remained key pressures.

With inputs from PTI