Editor’s Note
This article highlights the key factors behind the recent downturn in India’s gem and jewellery trade, as reported by the GJEPC. The decline is attributed to a combination of global economic pressures and geopolitical instability, underscoring the sector’s sensitivity to broader market conditions.
According to the Gem and Jewellery Export Promotion Council (GJEPC), the decline in gem and jewellery exports and imports in October was due to weak demand in major markets caused by slow economic growth, high interest rates, and cautious consumer spending. Geopolitical uncertainties and supply chain disruptions also impacted trade.
Data shows that total gross exports in October 2025 fell by 30.57% to $2,168.05 million (₹19,172.89 crore). This compares to $3,122.52 million (₹26,237.10 crore) a year ago. Imports also fell by 19.2% to $1,276.8 million (₹11,299.6 crore), down from $1,580.13 million (₹13,276.26 crore) in the same month last year.
He added that after the festivals, companies are also adjusting their stock levels up or down based on market conditions.
Domestically, fluctuations in gold and diamond prices, limited financing for exporters, and adjustments in the lab-grown diamond sector contributed to the decline in imports and exports. The GJEPC further stated that currency volatility and a strong dollar further impacted price competitiveness and trade volume.
In October, exports of cut and polished diamonds fell by 26.97% to $1,025.99 million (₹9,071.41 crore). Meanwhile, imports fell even more sharply by 35.76% to $132.95 million (₹1,176.7 crore).
The GJEPC highlighted the dual impact of new US tariffs, which include retaliatory measures and increasing competition from lab-grown diamonds (LGDs). Their prices are much lower, squeezing margins for natural diamonds.
The council said that manufacturers affected by tariffs have cut production, and with a slow recovery in global demand, the sector is focusing on stock optimization rather than new imports.
Gold jewellery exports saw a sharp decline in October, falling 24.61% to $850.15 million, as Indian products became uncompetitive and orders were cancelled due to the 50% US tariff. However, during the April-October 2025 period, gold jewellery exports increased by 11.9% to $6,645.63 million. This was supported by high gold prices and strong demand earlier in the year.
Gross silver jewellery exports (provisional, April 2025 – October 2025) stood at $717.78 million (14.36% in rupee terms). This is better than the corresponding figure of $652.95 million (₹5,465.16 crore) last year. During April-October 2025, silver jewellery exports increased by 9.93% in dollar terms and 14.36% in rupee terms, due to high gold prices in the current year.