Editor’s Note
While new US tariffs have hit many Indian export sectors hard, the gem and jewellery industry demonstrates a path forward through market diversification, managing to sustain overall export growth even as its US shipments decline sharply.
For the April to Sep 2025 period, G&J exports to the US dropped by 40.28% to $2.77 billion, while exports of cut and polished diamonds fell by 53.62% to $1.17 billion.
In contrast, shipments to the United Arab Emirates jumped by 65.23%, reaching $1.29 billion, underscoring Dubai’s emergence as a major trading hub for diamonds. Exports to Hong Kong also showed a healthy growth rate of 18%, hitting $2 billion, driven by demand from jewellery manufacturers and retailers ahead of the holiday season.
The value of polished natural diamonds exported was $778.29 per carat, indicating stable pricing and a gradual improvement in market confidence.
Plain and studded gold jewellery exports saw robust growth during the first half of FY 2025-26, led by strong demand from the UAE, the United Kingdom and Saudi Arabia. Exports to the UAE grew by 61.37% to $3.19 billion, compared to the same period last year, reaffirming the Emirates’ position as a key export destination for Indian jewellery.
The value shipped to the UK increased by 17.01% to $155 million, supported by steady retail demand and a growing appreciation of Indian design aesthetics. Exports to Saudi Arabia recorded a remarkable 124% increase, reaching $128.9 million, highlighting strengthening bilateral trade ties.
The period also saw the average global gold price increase by nearly 36% year-on-year, reflecting strong investor confidence and shifting market dynamics in favour of gold as a safe-haven asset.