Editor’s Note
This article highlights the resilience of India’s gems and jewellery sector, which has maintained remarkable stability in exports despite a global economic slowdown. The data reveals a strategic pivot to new markets, underscoring the industry’s adaptability in a challenging trade environment.
India’s gems and jewellery sector has demonstrated resilience in a challenging economic environment. From April 2025 to January 2026, total exports stood at $23.19 billion. This represents a marginal decline of 0.64% in dollar terms, but an increase of 3.57% in rupee terms, reflecting currency fluctuations. These figures illustrate how the industry has adapted its strategy and penetrated new markets, rather than relying solely on one market.
The biggest shock behind this stability came from the United States, where exports plummeted by a massive 45%. High tariffs and price differentials led to reduced demand, particularly for diamonds and high-value jewellery. However, companies timely compensated for this loss by registering growth of 23.7% in the UAE, 33.5% in Hong Kong, and over 36% in Australia and France. Double-digit growth was also achieved from countries like Belgium, Thailand, and Israel.
Analyzing by product category, exports of cut and polished diamonds declined by 7.46% to $9.97 billion. The main reasons were weak demand in markets like the US and China, cautious buyer sentiment, and increasing competition from lab-grown diamonds (LGDs).
The lab-grown diamond (LGD) segment also saw a decline of 9.73%, falling to $923.62 million. This was due to increased global supply and a sharp drop in prices, which reduced their value. In 2023, wholesale prices for LGDs fell by up to 58%, shifting consumer confidence back towards natural stones.
In stark contrast, jewellery segments showed remarkable strength. Exports of gold jewellery increased by 5.53% to reach $9.71 billion, with particularly strong demand for studded gold jewellery. Plain gold jewellery saw a modest increase. Despite gold prices reaching around $2,910.32 per ounce by March 2025, exports of silver jewellery surged by a remarkable 51.21% to $1.28 billion, viewed as ‘affordable luxury’. Platinum jewellery also grew by 49.09% to $215.15 million.
India is the world’s largest diamond exporter, but its position has been impacted by the slowdown in the global market. In 2024, global diamond exports fell by approximately 28%.
However, a ray of hope has emerged from the proposed India-US trade framework. If implemented, it could pave the way for zero duty on diamonds and an 18% tariff on jewellery. This could boost exports by up to $3 billion annually and support India’s competitiveness.
The industry hopes that government reforms and the search for new markets will continue to achieve the target of taking gems and jewellery exports to $100 billion by 2047.