Editorial photo #13731264 Economy, Business and Finance

Global Tensions Impact India’s Gold And Diamond Market

Gold earrings are displayed during a jewellery exhibition in Srinagar, Jammu and Kashmir, on May 21, 2026. The ongoing Middle East conflict is affecting India's gold and diamond economy through rising prices, supply-chain disruptions, and weaker consumer demand, according to industry reports and trade data. India, a major gold importer and global hub for diamond polishing, faces pressure as geopolitical tensions increase crude oil prices and disrupt international trade routes. Higher oil prices have weakened the Indian rupee and raised import costs for gold and precious stones. Reuters reports that India's trade deficit widened sharply in April 2026 as oil imports surged due to the conflict, while gold imports increased by 84 percent. The conflict has also disrupted the Gulf market, a key destination for Indian jewellery retailers and exporters. Earlier this month, Indian Prime Minister Narendra Modi urged citizens to reduce fuel consumption by using public transport, working from home, limiting overseas travel, and postponing gold purchases, as rising global energy prices continue to pressure the country's foreign exchange reserves. (Photo by Firdous Nazir/NurPhoto)