Editor’s Note
This analysis highlights the multifaceted pressures on the global gems and jewellery trade, from macroeconomic headwinds in key markets to geopolitical and supply chain disruptions. The sector’s performance remains a sensitive indicator of broader consumer sentiment and economic stability.
According to the report, the main reasons for the decline in gems and jewellery exports and imports in October were weakening demand due to US tariffs, coupled with slow economic growth, high interest rates, and cautious consumer spending in the US, Europe, and China. On the other hand, geopolitical uncertainties and supply chain disruptions have also affected trade. In the domestic market, fluctuations in gold and silver prices, limited financial facilities for exporters, and the impact of lab-grown diamonds have also affected imports and exports. Furthermore, currency fluctuations and a strong dollar have impacted trade due to price competitiveness.
Colin Shah, Managing Director of Kama Jewelry, explained that the impact of previously imposed tariffs is now being felt, which has increased costs and reduced purchases, while manufacturers are adjusting post-festive season inventory.
He says India’s domestic market is particularly driven by wedding and festival seasons, which can boost the sector.
According to the Gems and Jewellery Export Promotion Council, the Maharashtra Cabinet has formally approved the Gems and Jewellery Policy 2025. Its aim is to establish the state as a significant player in the global jewellery sector, which will provide further impetus to the industry.
Shah added.