Gems, jewellery exports flat as shipments to US plunge 44%

India’s gem and jewellery exports remained nearly flat during April–December 2025 compared with the same period a year earlier, but shipments to the United States fell sharply, the Gem and Jewellery Export Promotion Council (GJEPC) said on Friday.

Provisional exports for the nine-month period stood at $20.75 billion, marking a marginal year-on-year decline of 0.41%, though exports grew 3.69% in rupee terms. Exports to the US dropped 44%, falling from $6.95 billion in April–December 2024 to $3.86 billion during the same period in 2025.

The decline was even steeper in December, when exports to the US fell 50.44% year on year, reflecting tariff-related pressures and weaker discretionary demand. The United States remains India’s largest market for gems and jewellery, accounting for nearly 30% of total exports.

GJEPC chairperson Kirit Bhansali described the sharp fall in US shipments as a serious concern. “Prolonged uncertainty around tariffs could adversely impact the long-term viability of the US market for Indian jewellery exporters,” he said, adding that the industry was hopeful ongoing bilateral trade talks would lead to a timely resolution.

The slowdown has compounded challenges in Surat, which processes nearly 80% of the world’s diamonds. The sector has been hit by global supply chain disruptions, subdued demand, and US sanctions on polished diamonds made from Russian rough stones, which account for about one-third of Surat’s supply. These factors have led to factory slowdowns and job losses.

GJEPC said growth in jewellery exports helped offset weaker performance in diamonds, with higher shipments of gold, silver and platinum jewellery compensating for lower exports of cut and polished diamonds and lab-grown diamonds.

Exports to alternative markets provided support, with shipments to the United Arab Emirates rising 28% year on year to $6.89 billion, exports to Hong Kong increasing 28% to $4.25 billion, and exports to Australia growing about 40% to $277.76 million.

Bhansali said free trade agreements with the UAE and Australia had come at a critical time for the industry. He added that recent and upcoming FTAs with countries including the UK, Oman and New Zealand were expected to boost competitiveness by reducing duties and easing trade barriers, helping Indian exporters diversify markets and strengthen their global presence.