India’s gem and jewellery exports may have seen a mild dip in dollar terms this year, but the bigger story lies in how the industry is quietly moving away from its dependence on a single market and reshaping its export mix.

Exports for FY2025–26 stood at $27.72 billion, down 3.32% year-on-year, even as they inched up 0.93% in rupee terms to ₹2.44 lakh crore. What stands out is not the headline number, but how exporters are adapting to a more volatile global environment marked by geopolitical tensions and shifting trade policies.

“This marks a phase of structural reset,” said Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council. “Growth is becoming more broad-based and less dependent on a single market. Exporters have actively diversified into new geographies and strengthened value-added segments.” 

While exports to the United States fell sharply by 44.92% to $5.08 billion, other markets stepped in. The UAE retained its position as the top destination with exports rising 10.52% to $8.70 billion. Hong Kong grew nearly 31%, while Australia and Canada posted strong gains of 38.33% and 115% respectively. 

Free trade agreements have played a role here. The UAE pact helped drive growth, although tensions in West Asia capped the full-year expansion. Similar agreements with Australia have opened up newer opportunities, and upcoming deals with the UK and EU are expected to further support exports.

The product mix is also changing.

Cut and polished diamonds, still the largest segment with a 43.9% share, saw exports fall 8.52% to $12.16 billion. The decline reflects multiple pressures, including US tariff changes, inventory corrections and subdued discretionary spending globally. 

Gold jewellery exports remained largely flat at $11.36 billion. But within that, a divergence is clear. Plain gold jewellery fell 7.42% due to high gold prices dampening demand, especially in price-sensitive markets. In contrast, studded gold jewellery grew 6.27% to $6.52 billion, indicating a shift towards design-led, higher-value products. 

The strongest momentum came from smaller segments.

Silver jewellery exports surged 52.21% to $1.47 billion, driven by affordability and rising global demand. Platinum jewellery exports rose 39.32% to $254.6 million, reflecting growing acceptance in premium niches. 

Lab-grown diamonds presented a mixed picture. Polished exports declined 10.55% to $1.13 billion due to price corrections, even as volumes increased. At the same time, gold jewellery studded with lab-grown diamonds grew 31.3%, pointing to evolving consumer preferences and product segmentation. 

Regionally, Mumbai and surrounding areas continued to dominate exports at $18.57 billion, while Gujarat remained a key hub with $2.40 billion in shipments. 

The slowdown in traditional strongholds like the US has forced exporters to rethink strategy. In response, they are widening their geographic reach and moving up the value chain.

The sector is transitioning to becoming less vulnerable to single-market shocks and more aligned with global demand trends.