India’s gem and jewellery exports to the United States fell sharply during April–December 2025. Exports declined 44.42% year-on-year to US$ 3.86 billion, compared to US$ 6.95 billion in the same period last year. In December alone, shipments to the US dropped further by 50.44%, reflecting tariff-related pressures and weaker discretionary demand.
As a result, exporters faced continued uncertainty in India’s largest jewellery export market.
GJEPC Flags Tariff Concerns but Remains Hopeful
Commenting on the decline, Shri Kirit Bhansali, Chairman, GJEPC, noted that the US accounts for nearly 30% of India’s gem and jewellery exports. Therefore, prolonged tariff uncertainty poses a serious challenge for exporters. However, he expressed confidence that ongoing bilateral trade discussions would lead to a timely and positive resolution.
Overall Exports Remain Stable Despite US Pressure
Despite weakness in the US market, India’s overall gem and jewellery exports remained stable. Provisional exports during April–December 2025 stood at US$ 20.75 billion. This marked only a marginal year-on-year dip of 0.41% in dollar terms. Meanwhile, exports grew 3.69% in rupee terms, supported by currency movement and steady trade flows.
Consequently, the industry demonstrated resilience amid global trade volatility.
Market Diversification Offsets Regional Slowdown
Importantly, strong growth in alternative markets helped cushion the impact of the US slowdown. Exports to the UAE rose 28.08% to US$ 6.89 billion. Similarly, shipments to Hong Kong increased 28.19% to US$ 4.25 billion. In addition, exports to Australia surged 39.83% to US$ 277.76 million.
These gains underline the growing importance of diversified and FTA-supported markets.
FTAs Strengthen India’s Global Trade Position
Highlighting the role of trade agreements, Bhansali said that FTAs with the UAE and Australia arrived at a crucial time. Moreover, recent agreements with the UK, Oman and New Zealand are expected to further improve competitiveness by reducing duties and easing trade barriers.
At the same time, India’s ongoing trade negotiations are likely to open new markets and strengthen the country’s global standing.
Product Mix Shift Supports Export Stability
Meanwhile, changes in product mix helped stabilise exports. Jewellery exports, particularly gold, silver and platinum jewellery, showed strong growth. In contrast, cut and polished diamonds and lab-grown diamonds saw moderation due to tariff pressures and softer US demand.
This shift reflects the industry’s focus on value addition and market-led strategies.
Rising Gold Prices Drive Value Growth
During April–December 2025, plain gold jewellery exports recorded value growth of 7.72% to US$ 3,816.97 million. However, this growth was largely value-led. Gold bar prices rose by 52% year-on-year, resulting in higher realisations even as export volumes moderated.
Category-wise Export Performance Snapshot
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Cut and polished diamond exports declined 7.85% to US$ 8.99 billion
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Total gold jewellery exports grew 7.28% to US$ 8.67 billion
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Silver jewellery exports surged 44.36% to US$ 1.11 billion
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Platinum jewellery exports jumped 49.16% to US$ 195.65 million
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Lab-grown diamond exports fell 10.28% to US$ 840.14 million
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Coloured gemstone exports slipped marginally by 3.16% to US$ 294.52 million
A More Balanced, Future-Ready Export Base
Overall, the Indian gem and jewellery industry is no longer reliant on a few traditional markets. Instead, exporters are expanding across West Asia, Asia-Pacific, Australia and emerging regions. As a result, market diversification has become a key structural shift, helping the sector build a more balanced and future-ready export ecosystem.
