Editor’s Note
While the U.S. market for Indian diamonds has softened, shifting trade patterns offer new avenues for growth. This analysis highlights the industry’s resilience and evolving global footprint.
New Delhi:
This year has brought mixed results for the Indian gem and jewellery industry. On one hand, its largest market, the United States of America, has recorded a sharp decline in exports of Indian cut and polished diamonds (CPD). On the other hand, markets like the United Arab Emirates (UAE), Hong Kong, and the United Kingdom (UK) have given the industry new hope.
According to data released by the Gem & Jewellery Export Promotion Council (GJEPC) on Tuesday, exports of CPD to the USA in the first half of this financial year (April-September 2025) saw a sharp decline of 53.62 percent compared to the same period last year, amounting to $1,175 million.
This decline accelerated after the new tariffs imposed by President Donald Trump in August. Notably, the USA is the largest buyer of Indian gems and jewellery, accounting for nearly one-third of India’s total exports, approximately $10 billion.
Despite the slowdown in the USA, other key markets have provided significant support to the Indian diamond industry. According to the data, the most dramatic surge was seen in the UAE market, where exports increased by 65.23 percent to reach approximately $1,300 million.
This was followed by the Hong Kong market, which saw exports of $2,057 million, an increase of 18 percent. Meanwhile, the UK market also recorded a 17 percent increase, reaching $155.50 million.
GJEPC Chairman, Kirit Bhansali, stated that the council is “working closely with the Government of India to support the industry.”
Despite these challenges, total gem and jewellery exports saw a modest increase of 3.66 percent between April and September 2025, reaching $14.09 billion, compared to $13.60 billion last year. In September 2025 alone, total exports grew by 6.55 percent, indicating an improvement in market sentiment.
Bhansali described this as “encouraging signs of recovery for the industry” and expressed hope that demand in global markets would increase further in the upcoming festive and wedding seasons.
President of the Surat Diamond Association, Jagdish Khunt, said:
He also noted that diamond consumption in the domestic market has increased from 5 percent to over 15 percent, with a significant portion being lab-grown diamonds (LGD). The LGD industry has played a crucial role in saving both industries by providing employment to artisans during the downturn in the natural diamond industry. However, LGD exports in the first half of the financial year decreased by 7.99% to $586.63 million.