India’s gem and jewellery exports have shown signs of stabilization in the current fiscal period (April–January), despite a pronounced slowdown in shipments to the United States — historically the largest destination for Indian polished diamonds and jewellery.
Data released by the Gem & Jewellery Export Promotion Council (GJEPC) indicate that total exports remained largely steady year-on-year at approximately $ 23 billion, reflecting only a marginal contraction despite weak global sentiment and continued inventory correction across key markets.
The US downturn has significantly affected polished diamond exports, particularly in commercial categories and mid-sized stones. Cautious retailer procurement, high interest rates and subdued consumer demand have constrained order volumes, impacting India’s cutting and polishing sector.
Given India’s dominant position in global diamond processing, the slowdown in American demand has had a visible ripple effect across manufacturing hubs.
However, export diversification is emerging as a structural stabilizer. Markets such as the UAE, Hong Kong and select European destinations have recorded improved demand, helping cushion the overall export performance.
The Middle East continues to demonstrate resilience, supported by tourism-driven luxury spending and favourable trade frameworks. Increased traction in alternative markets highlights India’s strategic pivot toward reducing over-reliance on a single geography.
While polished diamonds remain under pressure, certain jewellery categories — including silver and select gold segments — are witnessing comparatively better movement. Exporters are increasingly recalibrating product assortments, focusing on value-driven offerings and flexible production cycles.
Ongoing trade discussions between India and the US are expected to support gradual recovery by improving competitiveness and easing tariff-related constraints. Industry stakeholders remain cautiously optimistic that improved alignment in trade policies could revive momentum in the coming quarters.
For the global diamond and jewellery trade, India’s current export performance signals resilience amid volatility — underpinned by market diversification, adaptive manufacturing strategies and evolving international demand dynamics.
