Gem and jewellery exports to US down 44%, but new markets steady trade

Surat/Ahmedabad: India's gem and jewellery exports to the United States witnessed a sharp contraction during April–Dec 2025, declining by 44% year on year to $3.86 billion, compared to $6.95 billion in the corresponding period last year, according to data from the Gems and Jewellery Export Promotion Council (GJEPC). In Dec 2025, exports to the US fell by 50.44% year on year, indicating the continued impact of tariff-related pressures and subdued discretionary demand.
Industry representatives said the tariff impact was already translating into demand loss and job cuts across the jewellery value chain.Haresh Acharya, director, India Bullion and Jewellers' Association (IBJA), said: "Tariff pressures from the US have led to a sharp decline in India's jewellery exports to the market. The additional 25% duties imposed since August dampened demand for Indian jewellery, even as competitors such as Italy benefited from free trade agreements and China faced relatively lower tariffs. With domestic gold prices touching record highs at the same time, the industry has taken a severe hit. Several jewellery artisans and manufacturers have already been pushed out of work and if the current situation persists, the effects could be far more severe."Echoing industry concerns, the apex export body flagged risks to the long-term viability of the US market amid prolonged tariff uncertainty.Kirit Bhansali, GJEPC chairman, said, "US remains India's largest export destination, accounting for nearly 30% of our gem and jewellery exports. The sharp decline in shipments is a matter of serious concern. Prolonged uncertainty around tariffs could adversely impact the long-term viability of the US market for Indian jewellery exporters. That said, we have full faith in the govt of India and remain hopeful that ongoing bilateral trade discussions will lead to a positive and timely resolution."Despite the severe decline, overall diamond and jewellery exports showed signs of stabilization, supported by new markets and resilience in select product segments, according to the GJEPC.Cut and polished diamond (CPD) exports from India remained almost flat in Dec 2025 compared to the same month last year. After a continuous decline over the past couple of years, exports showed signs of stabilization over the last few months. CPD exports in Dec 2025 rose to $795 million, up 2.70% from $774 million in the same month last year. However, CPD exports from April to Dec 2025 declined by 7.85% to $8.99 billion from $9.75 billion in the corresponding period of 2024.Meanwhile, polished lab-grown diamond (LGD) exports continued to weaken. In Dec 2025, LGD exports slipped to $83 million from $85 million a year earlier. From April to Dec 2025, LGD exports declined by 10% to $840 million from $936 million.Even as diamond exports faced pressure, jewellery exports provided support. Total gold jewellery exports, including plain and studded jewellery, grew by 7.28% year on year to $8.67 billion during April-Dec 2025 compared to $8.08 billion in the same period of 2024. Within this, plain gold jewellery exports rose by 7.72% in value, while studded gold jewellery exports grew by 6.93%.Silver jewellery exports increased by 44.36% to $1.1 billion during April-Dec 2025 from $768 million in 2024, while platinum jewellery exports rose by 49.16% to $195 million from $131 million a year ago.According to GJEPC, "Despite the sharp contraction in the US market, India's overall gem and jewellery exports remained stable during April-Dec 2025. Provisional exports for the nine-month period aggregated $20.75 billion, a marginal dip of 0.41% year on year, while registering a 3.69% growth rate in rupee terms, supported by currency movement and steady trade flows."The near-flat performance highlighted market stabilization, with strong growth in jewellery exports —particularly gold, silver and platinum jewellery — offsetting moderation in cut and polished diamonds and lab-grown diamonds. This trend reflected the industry's ability to adapt through product mix optimisation, value addition, and diversified export destinations.A key stabilizing factor was the industry's ability to leverage free trade agreements (FTAs) and deepen its presence in alternative markets. Exports to the United Arab Emirates rose by 28.08% year on year to $6.89 billion, while shipments to Hong Kong increased by 28.19% to $4.25 billion. Exports to Australia also recorded strong growth, increasing by 39.83% to $278 million, underscoring the growing importance of diversified and FTA-supported markets.