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Gem and jewellery exports were down 16 per cent last month to $2.26 billion against $2.69 billion in the same period a year ago, on the back of growing geo-political uncertainty.
In rupee terms, it dipped 14 per cent to ₹19,261 crore (₹22,414 crore), according to the Gem and Jewellery Export Promotion Council of India data.
Import of gem and jewellery declined 13 per cent to $1.69 billion ($1.94 billion) due to the uncertainties on the US tariffs levied by President Donald Trump slowed down fresh orders.
Cut and polished diamond export declined 35 per cent to $950 million ($1.47 billion) due to the slowdown in demand for this product category in major consumer markets such as the US and China.
Similarly, import of cut and polished diamond declined 39 per cent to $85 million ($138 million for the same period last year).
Similarly, the growing affirmation of consumers towards a more sustainable and cost-effective category such as lab-grown diamonds impacted demand for natural diamonds.
Rough diamond also fell 5 per cent to $2.26 billion ($2.39 billion) as demand was weak in key markets such as US and China besides traders cutting down on fresh purchases before exhausting current inventories.
Polished lab grown diamond export plunged 33 per cent to $81 million ($ 120 million) due to the subdued demand in the overseas markets, primarily the US and China, resulting in overall weakened demand as both these countries are key export destinations for India.
In contrast, gold jewellery exports increased 17 per cent to $997 million ($851 million) on rally in gold prices.
Coloured gemstones exports were flat $63 million as it was somewhat immune to macro factors and has the ability to bounce back strongly.
Colin Shah, MD, Kama Jewelry, said the tariffs announced by US President has cast a shadow on gem and jewellery exports with customers cutting down on their orders.
This apart, he said the prolonged geopolitical tensions in the West Asia and Russia-Ukraine continue to disrupt the demand-supply dynamics, adding further woes to the already ailing sector.
Going forward, we expect trade activities to witness some disruption due to the ongoing geopolitical tensions in West Asia, which would continue to impact the demand-supply dynamics, he said.
Published on June 17, 2025
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