Weak overseas demand, higher costs and U.S. tariffs dragged down India’s October gems and jewellery shipments
India’s gems and jewellery sector posted a sharp downturn in October 2025 as both exports and imports contracted across key categories, weighed down by weak global demand, elevated interest rates, supply chain disruptions and the impact of steep U.S. tariffs, according to data released by the Gems and Jewellery Export Promotion Council (GJEPC).
Overall gross exports dropped 30.57 per cent to USD 2,168.05 million (Rs 19,172.89 crore) in October, compared with USD 3,122.52 million (Rs 26,237.10 crore) a year earlier. Imports slipped 19.2 per cent to USD 1,276.8 million (Rs 11,299.6 crore) from USD 1,580.13 million (Rs 13,276.26 crore) in the same month last year.
Colin Shah, Managing Director of Kama Jewellery, said the industry was now seeing the “impact of Trade tariffs imposed earlier,” which had raised costs and dampened demand, while manufacturers were adjusting inventory after the festive season.
GJEPC attributed the slide in October shipments to sluggish consumer spending in major markets such as the US, Europe and China, where slower economic activity and high borrowing costs continued to weigh on discretionary purchases. Geopolitical tensions and persistent supply bottlenecks further hampered trade flows.
The council noted that domestic factors, volatile gold and diamond prices, tighter financing conditions for exporters and ongoing adjustments in the lab-grown diamond segment added to the pressure. A strong US dollar and currency fluctuations also eroded price competitiveness.
Exports of cut and polished diamonds fell 26.97 per cent to USD 1,025.99 million (Rs 9,071.41 crore), while imports contracted 35.76 per cent to USD 132.95 million (Rs 1,176.7 crore). GJEPC pointed to the combined effect of new US tariffs, reciprocal measures, and rising competition from lower-priced lab-grown diamonds, which continued to squeeze natural diamond margins. Manufacturers impacted by tariffs have scaled back production and prioritised reducing inventory as global demand recovers slowly.
Between April and October 2025, rough diamond imports edged down 0.22 per cent to USD 6,451.60 million, though the rupee value increased 3.19 per cent. Import volumes saw a sharper fall of 6.57 per cent to 555.07 lakh carats from 594.13 lakh carats a year earlier, indicating a shift towards sourcing higher-value stones amid subdued demand.
Shipments of polished lab-grown diamonds declined 34.90 per cent in October to USD 94.37 million (Rs 834.45 crore), while exports during April–October were down 12.95 per cent at USD 681.18 million.
Gold jewellery exports slumped 24.61 per cent in October to USD 850.15 million as the 50 per cent U.S. tariff made Indian products uncompetitive, triggering order cancellations. However, exports for the April–October period rose 11.9 per cent to USD 6,645.63 million, supported by stronger prices and healthy demand earlier in the year.
Silver jewellery exports totalled USD 717.78 million during April–October 2025, up 9.93 per cent in USD terms and 14.36 per cent in rupee terms from the previous year’s provisional figure. The rise was partly attributed to elevated gold prices, which boosted silver’s relative attractiveness.
