India’s gems and jewellery sector’s August 2026 figures show an important shift. During the month, gold imports saw a sharp decline, while gems and jewellery exports recorded an increase. However, looking at the entire April-August period, the picture is different. During this period, gold imports still remained significantly higher than gems and jewellery exports. Meanwhile, within exports, the performance of studded gold jewellery, lab-grown diamonds and other value-added products remained strong.
Let us understand what these August figures signal for India’s trade and the gems and jewellery sector.
What’s Happening?
In August 2026, India’s gold imports fell by about 58% to $2.30 billion, compared to $5.44 billion in August 2025. On the other hand, gross gems and jewellery exports rose by 3.14% to $2.30 billion. In this way, the ratio of gold imports to gems and jewellery exports in August stood at approximately 1:1.
The situation was different in July. That month, gold imports were $4.16 billion and gems and jewellery exports were $2.35 billion. That is, there was a gap of about $1.81 billion between the two. The sharp decline in gold imports in August virtually eliminated this gap.
The impact of the decline in gold imports was also seen in India’s merchandise trade deficit. In July, it was $31.98 billion, which fell to $26.86 billion in August. In August, merchandise imports stood at $70.67 billion, while merchandise exports stood at $43.81 billion.
Value-Added Jewellery Boosted Export Growth
The most important change in August’s gems and jewellery exports was the strong growth in value-added jewellery. Exports of studded gold jewellery rose by 51.22% to $642.85 million. In rupee terms, they rose by 64.96% to Rs 6,137.81 crore. Meanwhile, plain gold jewellery exports fell by 23.90% to $356.97 million.
Exports of gold jewellery, which include both plain and studded jewellery, rose by 11.81% to $999.83 million. Meanwhile, cut and polished diamond exports fell by 4.93% to $924.51 million. However, export volume rose by 3.23% to 13.36 lakh carats, compared to 12.94 lakh carats in August 2025.
On the other hand, polished lab-grown diamond exports rose by 28.45% to $125.17 million, platinum jewellery exports rose by 29.09% to $22.50 million, and coloured gemstone exports rose by 34.40% to $49.07 million.
What Was the Sector’s Picture Like in April-August?
It is important to look at the August figures along with the April-August period. During this time, India’s gross gems and jewellery exports rose by 2.58% to $11.47 billion. In the same period, gold imports rose by 3.38% to $17.47 billion. That is, over the five-month period, a gap of about $6 billion remained between gold imports and gems and jewellery exports.
Gold jewellery exports rose by 7% to $5.03 billion. Within this, studded gold jewellery exports rose by 26.73% to $2.88 billion, while plain gold jewellery exports fell by 11.44% to $2.15 billion. Cut and polished diamond exports fell by 7.38% to $4.52 billion. Meanwhile, silver jewellery exports rose by 35.57% to $594.86 million and polished lab-grown diamond exports rose by 11.76% to $533.67 million.
This makes it clear that the performance of all categories behind the sector’s overall growth was not uniform. Some value-added categories recorded strong growth, while segments such as plain gold jewellery and cut and polished diamonds remained under pressure.
What Does This Mean for Investors?
The most important point in these figures is not merely the 3.14% growth in overall gems and jewellery exports, but the shift taking place in the export mix. The 51.22% growth in studded gold jewellery in August and 26.73% growth in April-August show that value-added jewellery made a significant contribution to the sector’s performance.
In contrast, pressure was visible on plain gold jewellery. According to GJEPC, the price of gold in August rose by 8.27% from July’s $4,073.92 per troy ounce to $4,410.89 per troy ounce. In the same period, a 23.90% decline was recorded in plain gold jewellery exports.
Therefore, looking only at overall export figures is not sufficient to understand the sector. The growth of categories such as studded jewellery, lab-grown diamonds, silver and platinum is also important.
What’s Next?
The coming together of gold imports and gems and jewellery exports at around $2.30 billion in August is an important monthly shift, but it would be premature to consider it a full-year trend. In April-August, gold imports stood at $17.47 billion, while gems and jewellery exports stood at $11.47 billion. This shows that over the five-month period, the gap between the two is still quite large.
On the other hand, India’s total merchandise exports in August stood at $43.81 billion, compared to $34.74 billion in the same month last year. In April-August, total merchandise exports stood at $215.91 billion, compared to $183.21 billion in the same period last year.
The future picture of the gems and jewellery sector will depend on how sustained the strong export growth of value-added jewellery remains and how diamond and other product categories perform. The August figures certainly show that an important shift has occurred in the product mix within the sector’s growth.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
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