Editor’s Note
India’s diamond exports have hit a two-decade low, reflecting weak global demand and underscoring the sector’s vulnerability to economic headwinds in key markets like the U.S. and China.
Data released recently by a major trade body shows that India’s exports of cut and polished diamonds fell to their lowest level in nearly two decades for the 2024/25 fiscal year ending in March, impacted by weak demand in the United States and China.
As the world’s largest diamond cutting and polishing center, India holds a significant position in the global diamond processing market. However, its economic performance is highly sensitive to market uncertainties, especially in its largest market, the United States.
A statement issued by the Gem & Jewellery Export Promotion Council (GJEPC) indicated that exports of cut and polished diamonds, which typically account for nearly half of total gem and jewellery shipments, fell by 16.8% year-on-year to $13.3 billion.
This downward trend also dragged down the total exports of gems and jewellery from $32.28 billion in the previous year to $28.5 billion, a decline of 11.7%, marking a four-year low.
The trade body also noted that due to weaker demand for polished diamonds, Indian processors cut their imports of rough diamonds by 24.3% to $10.8 billion.
However, it is worth noting that gem and jewellery exports in March saw a year-on-year increase of 1%, reaching $2.56 billion. This growth was primarily driven by exporters ramping up shipments ahead of the announced US tariffs.
Former US President Trump initially planned to impose a 27% tariff on goods imported from India starting April 9, as part of tariff measures against dozens of countries. However, this measure was subsequently announced to be suspended for 90 days. The US market accounts for over 30% of India’s gem and jewellery exports.