Editorial photo #13731273 Economy, Business and Finance

Global Tensions Impact India’s Gold And Diamond Market

An employee attends to a customer as the Silverlines logo is visible during a jewelry 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 a global hub for diamond polishing, is experiencing 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 reported that India's trade deficit widened significantly in April 2026 as oil imports surged due to the conflict, while gold imports increased by 84 percent. The conflict has also affected the Gulf market, a key destination for Indian jewelry retailers and exporters. Earlier this month, Indian Prime Minister Narendra Modi encouraged 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 impact the country's foreign exchange reserves. (Photo by Firdous Nazir/NurPhoto)