Gems and jewellery exports slipped 7 per cent in January to $2.23 billion against $2.40 billion logged in the same period last year due to the economic uncertainty unleashed by newly-elected US President Donald Trump.

In rupee terms, it was down three per cent to ₹19,302 crore from ₹19,995 crore, according to the data released by the Gems and Jewellery Export Promotion Council.

Overall, gem and jewellery imports were down 38 per cent to $1.42 million ($2.29 billion) as most of the wedding demand was met by domestic jewellery manufacturers.

Cut and polished diamond exports declined 12 per cent to $1.01 billion ($1.16 billion) as consumer demand remains subdued in major markets of the world.

Similarly, import of cut and polished diamonds dipped 67 per cent to $54 million ($163.87 million).

Rough diamond imports were down 21 per cent at $8.75 billion ($11.13 billion) due to the weak demand owing to the global economic uncertainty caused by geopolitical tensions and Trump tariff.

This has compelled consumers to invest in safe-haven assets such as gold compared to diamonds, which is a non-yielding asset.

Colin Shah, MD, Kama Jewelry, said the industry is on a wait-and-watch mode to monitor Trump’s tariff stance, which will decide how the global market will navigate through these times.

However, he said a gradual rebound in trade activities will be seen in the upcoming months once there is absolute clarity.

Lab-grown diamond

The polished lab-grown diamond exports were also down 25 per cent to $85.44 million ($113.85 million) due to sharp price fluctuations leading to subdued demand.

Gold jewellery exports were up 20 per cent to $949.46 million ($788.06 million) on safe-haven appeal.

Coloured gemstone exports slipped 10 per cent to $353.92 million ($391.57 million) in January.

Published on February 18, 2025