India's gems and jewellery sector recorded a 34.64% growth in June [1], with total revenue reaching $2.41 billion [1].

This surge indicates a resilient luxury market that continues to expand despite significant headwinds in raw material costs. The growth signals a strong start to the first quarter of fiscal year 2027, which began in April.

Sabyasachi Ray of the Gem & Jewellery Export Promotion Council (GJEPC) said the sector's performance was driven by robust demand for studded jewellery. This demand coincided with the wedding and festive seasons, which traditionally drive high volumes of luxury purchases in India.

The growth occurred despite a challenging pricing environment for precious metals. Gold prices have risen by more than 80% year-on-year [2], a spike that typically dampens consumer appetite for plain gold ornaments.

However, the shift toward studded jewellery has helped maintain momentum. The GJEPC said it expects this trajectory to continue as the industry pivots toward higher-value exports. The council projects that gold and silver exports will rise from $764 million to $2.5 billion over the next three years [1].

The strong performance in the first quarter of the fiscal year suggests that consumer spending on high-end jewellery remains decoupled from the volatility of raw gold prices. The GJEPC said it remains optimistic that the diversification of product offerings will sustain this growth through the coming years.

“India's gems and jewellery sector recorded a 34.64% growth in June”

The industry's ability to grow while gold prices soar suggests a structural shift in consumer behavior toward 'studded' jewellery, which offers higher perceived value and prestige than plain gold. By diversifying the export mix and leveraging cultural demand during wedding seasons, India is insulating its jewellery trade from the inflationary pressures of the commodities market.