India’s gem and jewellery exports jump 26% in June as lab-grown diamonds surge

India’s gem and jewellery sector posted a sharp recovery in June, with gross exports jumping 26% year-on-year to $2.2 billion, up from $1.7 billion a year earlier. The rebound came despite ongoing geopolitical tensions and subdued global consumer sentiment, and was driven by strong demand for gold jewellery, stabilising natural diamond prices and a rapid rise in lab-grown diamond shipments.

Lab-grown diamonds (LGDs) were among the standout performers. Polished LGD exports surged 52% in June to $101 million, and rose 14% during the April-June quarter to $296 million. The growth reflects a widening shift in cutting and polishing units toward lab-grown stones even as the broader diamond trade works through a slower patch.

Cut and polished natural diamond (CPD) exports rose 8.7% in June to $847 million, from $779 million a year ago. Over the full April-June quarter, however, the picture was more mixed: overall gem and jewellery exports stayed largely flat at $6.6 billion, while CPD exports for the quarter dipped 4% to $2.7 billion.

An industry expert said the key positive signal was the stabilisation of natural diamond prices, which indicates that demand is returning to the segment. As currencies weaken globally, the expert added, investors are also gravitating toward precious stones and metals as a store of value.

On the import side, rough diamond imports fell 27% in June to $700 million from $961 million a year earlier, and plunged 32% to $2.1 billion for the April-June quarter, with volumes down 15% to 228 lakh carats from 270 lakh carats. Industry sources said the lower inflow of rough stones should help balance supply and support prices for cut and polished diamonds going forward.

Dinesh Navadiya, chairman of the Indian Diamond Institute, said stabilising natural diamond prices are reviving confidence across the trade, and that strong growth in studded jewellery exports is also benefiting the diamond cutting and polishing industry.

Wikimedia Commons/by Theminimalcarbon