Rupee Depreciation Masks Modest Growth In India’s Gem And Jewellery Exports

India's gem and jewellery shipments jumped 12.52% year-on-year to reach ₹21,945.87 crore in August, but a sharp drop in the rupee's exchange value means actual global demand grew by just 3%.

Data released by the Gem and Jewellery Export Promotion Council (GJEPC) shows that while domestic headline figures appear strong, currency depreciation heavily skewed the numbers. The Indian rupee fell roughly 9.1% against the US dollar over the past year—trading around ₹95.43 per dollar in August 2026 compared to ₹87.50 in August 2025. When measured in dollars, the currency used for international trade settlements, the double-digit jump narrows down to a modest 3% expansion.

Studded Gold Jewellery Drives Overseas Growth

Despite the currency-driven inflation in baseline export figures, the data highlights a clear structural shift away from raw processing towards high-value finished items. Studded gold jewellery emerged as the primary growth engine, soaring 64.96% to $642.85 million during the month, backed by steady retail orders across key overseas hubs including the US, UAE, Hong Kong, the UK, and France.

• Cumulative Gold Trends: Between April and August 2026, total gold jewellery exports rose 7% to ₹47,853.03 crore. Studded items surged 26.73%, comfortably offsetting an 11.44% contraction in plain gold jewellery exports.

• Alternative Precious Metals: Silver jewellery exports climbed 35.57%, while platinum jewellery shipments expanded 19.67% to hit ₹953.36 crore.

• Lab-Grown Segment: Polished lab-grown diamonds maintained upward momentum, rising 11.76% to touch ₹5,076.61 crore over the five-month period.

Diamond Cutters Face Margin Pressure

The traditional cut and polished diamond sector continues to grapple with pricing headwinds overseas. Export values remained constrained despite an increase in physical shipment volumes, which rose to 13.36 lakh carats in August 2026 from 12.94 lakh carats in the corresponding period last year.

The divergence underlines how Indian manufacturers are leaning on complex, value-added jewellery design to protect export margins as raw diamond processing yields lower returns in global markets.