The decline shows the continued impact of tariff-related pressures and subdued discretionary demand
India’s gem and jewellery exports to the United States witnessed a sharp contraction during April to December 2025 period, declining 44.42 per cent year-on-year to USD 3.86 billion. In December 2025, exports to the US declined by 50.44 per cent YoY, reflecting the continued impact of tariff-related pressures and subdued discretionary demand, data from Gems and Jewellery Export Promotion Council (GJEPC) showed.
“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 Government of India and remain hopeful that ongoing bilateral trade discussions will lead to a positive and timely resolution,” stated Kirit Bhansali, Chairman, GJEPC.
Despite the sharp contraction in the US market, India’s overall gem and jewellery exports remained stable during April to December 2025. Provisional exports for the nine-month period aggregated USD 20.75 billion, reflecting a marginal dip of 0.41 per cent year-on-year, while registering a 3.69 per cent growth in rupee terms, supported by currency movement and steady trade flows.
GJEPC noted that the near-flat performance highlights market stabilisation, with strong growth in jewellery exports, particularly gold, silver and platinum jewellery, offsetting moderation in cut and polished diamonds and lab-grown diamonds.
A key stabilising factor has been the industry’s ability to leverage Free Trade Agreements (FTAs) and deepen its presence in alternative markets. Exports to the United Arab Emirates rose 28.08 per cent YoY to USD 6.89 billion, while shipments to Hong Kong increased 28.19 per cent to USD 4.25 billion. Exports to Australia also recorded strong growth, rising 39.83 per cent to USD 277.76 million.
“Free trade agreements with the UAE and Australia have come at a crucial time for the industry. Recent FTAs with the UK, Oman, New Zealand and others will further enhance competitiveness by reducing duties and easing trade barriers. With the Centre currently negotiating multiple trade agreements, we are confident these will open new markets and strengthen India’s position globally on quality, value and trust,” Bhansali added.
Cut and polished diamond exports during April to December 2025 stood at USD 8.99 billion, registering a 7.85 per cent per cent year-on-year decline, largely due to tariff-related pressures and reduced demand from the United States. Total gold jewellery exports, including plain and studded jewellery, grew 7.28 per cent year-on-year to USD 8.67 billion during the period. Within this, plain gold jewellery exports increased 7.72 per cent in value, while studded gold jewellery exports rose 6.93 per cent, GJEPC highlighted.
