【India】Gem and Jewelry Exports to Regain Shine: Hope for Export Surge After Slump Due to US Tariff Reduction

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Editor’s Note

This article highlights a sharp 44.5% decline in exports to the U.S. from April to December 2025, particularly affecting key jewelry sectors. It also notes emerging industry optimism following recent tariff adjustments.

Diamond
Significant Export Decline

Exports to the United States between April and December 2025 saw a 44.5 percent decline, with cut and polished diamonds, gold-studded jewelry, and plain gold jewelry being the most affected.

Industry Optimism Post-Tariff Easing

The softening of US tariffs has boosted demand confidence across the entire sector, raising hopes of recovering losses incurred over the past 10 months and regaining momentum. The retaliatory tariffs imposed last year on Indian gems and jewelry, including diamonds, had dimmed the trade sparkle between India and the US. The US is the largest market for precious gems with over a 30 percent share. The impact led to a 44.5 percent decline in exports to the US between April and December 2025, with cut and polished diamonds, gold-studded jewelry, and plain gold jewelry being the most affected.

Industry Body Statement
“GJEPC hopes that due to India’s trade agreement, rough diamonds and colored gemstones from India will benefit from zero-duty import into the US under Annexure 3 of the US retaliatory tariff list, which will provide much-needed support to diamond exports. This will boost trade, restore confidence, and give a strong impetus to the entire industry.”

The industry organization Gem & Jewellery Export Promotion Council (GJEPC) said in a statement.

Export Figures

GJEPC data shows that exports of cut and polished diamonds fell by 60.11 percent to $1.45 billion in 2025 compared to $3.63 billion in 2024. Exports of gold-studded jewelry declined by 24.54 percent, dropping to $1.6 billion from $2.11 billion, while plain gold jewelry saw a 28.89 percent decrease, falling to $183.84 million from $258.53 million.

Industry Leader’s Perspective
“After the implementation of tariffs and additional tariffs last year, demand in this sector was seen to decline by up to 45 percent. Now, with this new tariff structure, the industry hopes that demand will increase again. The US remains our largest market.”

said Dinesh Navadia, Chairman of the Indian Diamond Institute. He added that the sector would continue to explore new markets like the United Arab Emirates (UAE) while focusing on lab-grown diamonds.

Current Challenges and Future Outlook

An operator of a unit said that more clarity is still awaited, and the low demand for diamonds means there are currently fewer workers. However, this situation could change as more clarity emerges and new orders start coming in. For nearly the past 10 months, the Surat industry has been grappling with low demand for natural and cut diamonds, creating uncertainty about the future of artisans in the region.

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⏰ Published on: February 03, 2026