Indian exporters, including those in gems and jewellery, face severe supply chain disruptions ahead of the Christmas season due to the Iran conflict. Transit times to Europe have nearly doubled to 60 days, freight costs have surged 15-30%, and raw material prices have spiked up to 70%. These pressures are eroding margins and tying up working capital, even as demand from US and European buyers remains steady. For overseas jewelry buyers, this signals potential delays in holiday inventory and higher landed costs for Indian-sourced rings, earrings, necklaces, and fashion accessories.
Supply-chain impact
The Iran conflict has forced vessels to avoid West Asia routes and take longer passages around the Cape of Good Hope. This has extended transit times for Indian exports to Europe from the usual 24-40 days to nearly 60 days. Sea freight costs have risen by 15-30%, while raw material prices for sectors like home textiles and footwear have increased 20-70%. These disruptions directly affect the delivery schedules of gems and jewellery, fashion accessories, and other Christmas-bound goods.
Sector-specific challenges
India's gems and jewellery sector, which traditionally ships Christmas orders between June and September, is now grappling with longer lead times and higher logistics costs. The US, India's largest export destination with over $86 billion in goods exports in FY25, remains a key market. However, exporters report that extended transit periods delay payments, keeping working capital tied up longer. Vikas Singh Chauhan of the HomeTextile Exporters Welfare Association noted that raw material price hikes have substantially increased the working capital needed to execute the same order volume.
What buyers should watch
Overseas jewelry buyers should anticipate potential delays in receiving Christmas-season inventory from Indian suppliers. Extended transit times and container shortages may push delivery windows beyond the holiday retail season. Buyers are advised to communicate closely with suppliers on revised shipping schedules and consider buffer stock arrangements. Additionally, the rising cost of raw materials, particularly petroleum-based components used in fashion accessories and findings, may lead to price adjustments on new orders.
Compliance and logistics signals
Despite the disruptions, Indian exporters report steady demand from US and European buyers, partly driven by global supply chain diversification. The footwear sector, for example, has seen stronger order books due to India's push for free trade agreements and bilateral trade deals. However, exporters caution that container shortages and longer shipping routes are compounding operational challenges. For buyers sourcing from India, monitoring logistics updates and exploring alternative shipping routes or early booking strategies may help mitigate risks.
China sourcing context
While India remains a key sourcing hub for jewelry and fashion accessories, the current disruptions highlight the importance of diversified supply chains. Buyers who also source from China may find that Chinese exporters face similar geopolitical pressures, but China's established logistics infrastructure and alternative shipping routes could offer more stability. Comparing lead times and costs between Indian and Chinese suppliers for sterling silver, gold-plated brass, and gemstone jewelry could provide a competitive edge during this volatile period.
Source: Read the original report | Published: June 02, 2026