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Silver & Lab-Grown Diamonds Spark India's Jewellery Export Growth as Gold Declines

· · 2 min read

India's gems and jewellery exports are shifting, with silver and lab-grown diamonds driving significant growth. This comes as gold jewellery exports decline amid volatile prices and evolving consumer preferences for affordable luxury.

India's gems and jewellery export landscape is undergoing a notable transformation, with traditional gold products losing ground to more affordable alternatives. Recent data for April-May 2026 reveals a significant surge in demand for silver jewellery and lab-grown diamonds, even as overall exports experienced a slight dip. This shift reflects changing global consumption patterns, economic uncertainties, and consumers' increasing preference for value.

Silver Jewellery Exports Skyrocket

Silver jewellery has emerged as the clear frontrunner, with provisional exports skyrocketing by 172.53% to $365.77 million during April-May 2026, compared to $134.21 million in the same period last year. This remarkable growth is attributed to rising international demand for cost-effective options, fashion-driven consumption, and improved export opportunities. As gold prices remain high and volatile, silver offers an accessible yet aesthetically pleasing alternative.

Platinum Gains Traction

Platinum jewellery also recorded healthy growth, with exports increasing by 24.97% year-on-year to $41.22 million in April-May 2026. This trend indicates a growing appetite for contemporary premium jewellery that combines the allure of a precious metal with relative affordability compared to gold. Industry experts note platinum's increasing favor among consumers seeking both exclusivity and value.

Lab-Grown Diamonds Shine Bright

Lab-grown diamonds continue their upward trajectory. Provisional exports of polished lab-grown diamonds climbed 25.99% to $101.50 million in May 2026 alone. For the April-May period, exports reached $194.78 million, a 1.98% year-on-year increase. In terms of volume, exports rose 16.81% to 28.34 lakh carats. This segment's popularity is fueled by price-conscious consumers and a dedicated customer base drawn to competitively priced stones, positioning them as an affordable luxury amid challenging economic conditions.

Gold's Retreat from the Export Market

In stark contrast, gold jewellery exports continued to struggle. Total exports of plain and studded gold jewellery fell 14.75% year-on-year to $758.44 million in May. Plain gold jewellery was particularly affected, plunging 29.39% in May and 40.11% over April-May. This decline is a direct consequence of high gold prices and cautious spending by international buyers. Studded gold jewellery showed more resilience, with cumulative exports rising 6.71% in April-May, partly due to demand for lower-carat, more affordable products.

Future Outlook and Trade Agreements

Colin Shah, Managing Director of Kama Jewelry, commented on the sector's performance, suggesting that "signs of revival were emerging as geopolitical tensions eased, though exports are expected to remain under pressure until global conditions stabilise." He also highlighted that new free trade agreements could "help exporters tap newer markets and sustain business momentum." The current trade trends underscore a clear shift in global jewellery demand, prioritizing affordability and value over traditional gold.

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