• US exports: $3.86 billion during April–Dec 2025 (44% YoY drop); December alone: down 50.44% YoY
  • Cut & polished diamonds (CPD): $795 million in December 2025, +2.7% YoY; April–Dec down 7.85%
  • Lab-grown diamonds (LGD): $83 million in December 2025, down from $85 million last year; April–Dec down 10.28%
  • Coloured gemstone exports slipped marginally by 3.16% to US $ 294.52 millon

India’s gem and jewellery exports to the United States faced a sharp slowdown during April–December 2025, falling 44% year on year to $3.86 billion, compared with $6.95 billion in the same period last year, according to the Gems and Jewellery Export Promotion Council (GJEPC). The decline was particularly steep in December 2025, when shipments to the US dropped 50.44% year on year, highlighting the ongoing impact of tariffs and subdued discretionary demand.  

According to the Gems and Jewellery Export Promotion Council (GJEPC), India’s overall gem and jewellery exports remained largely stable during April–December 2025 despite a sharp slowdown in shipments to the US. Provisional exports for the nine-month period stood at $20.75 billion, marking a marginal year-on-year decline of 0.41%.

In rupee terms, however, exports recorded a growth of 3.69%, supported by currency movements and relatively steady trade across other markets. While exports to the US fell sharply, this was partly offset by steadier demand from other regions and a stronger contribution from jewellery shipments. The weaker rupee also helped improve rupee realisations, allowing exporters to absorb some of the pressure.

Gold Jewellery: The growth of over 7% of gold jewellery exports is largely driven due to the preference of yellow metal, for both consumption and as a hedge against inflation. Having said that, gold jewellery demand trends will need to be watched upon in the coming months given the fact that the holiday season is on the verge of getting over. It is a likelihood of the demand getting picked up domestically for light-weight jewellery pieces that will fill in for the volatility in exports, if any.

Cut and polished diamond (CPD): Exports remained largely stable in December 2025 after a prolonged period of decline. Exports for the month stood at $795 million, marking a modest year-on-year increase of 2.7% compared with $774 million in December 2024, indicating early signs of stabilization over the past few months. CPD exports during April–December 2025 continued to trail last year’s levels. Shipments declined 7.85% year on year to $8.99 billion, compared with $9.75 billion in the same period of 2024, reflecting the lingering effects of weak global demand. The near-flat performance in December 2025 shows the sharp downturn in CPD exports may be easing. After prolonged destocking over the past two years, buyers in key markets such as the US and China appear to be returning cautiously, helping stabilize exports at the monthly level.

The overall decline during April–December reflects the challenges the sector has faced through most of the year. Pricing pressures, rising competition from lab-grown diamonds, and conservative sourcing by global brands have further slowed the pace of recovery. While recent months indicate some stability, a meaningful rebound will depend on stronger consumer demand and improved confidence across global markets.

Polished lab-grown diamond (LGD): In December 2025, LGD exports eased to $83 million, compared with $85 million in the same month last year. On a cumulative basis, exports from April to December 2025 declined 10% year on year to $840 million, down from $936 million in the corresponding period of 2024. Rapid capacity expansion, especially over the past few years, has led to falling prices, prompting buyers to delay purchases and negotiate more aggressively. In addition, retailers remain cautious about stocking lab-grown diamonds amid concerns around further price erosion and evolving consumer preferences.

On the other hand, gold jewellery exports have benefited from steady demand, particularly for simpler, wearable designs that cater to everyday use and gifting. While high gold prices have been a challenge, they have also supported export values, and many buyers have focused on lighter-weight designs rather than cutting back entirely. The resilience in jewellery exports has helped cushion the impact of weaker LGD shipments, providing some stability to the overall sector.

Silver jewellery: Exports increased by 44.36% to $1.11 billion during April-Dec 2025 from $768 million in 2024, while platinum jewellery exports rose by 49.16% to $195 million from $131 million a year ago. This shows the strong growth as buyers looked for affordable yet stylish options and premium alternatives. Silver’s popularity is rising due to everyday wearable and gifting designs, while platinum’s appeal grew in luxury markets for its lasting value and modern designs. This helped exporters diversify amid challenges in gold and diamond segments.

Platinum Jewellery:  The massive jump in platinum jewellery exports is due to the diversification of product class to cater to a massive audience base, especially the ones looking for alternatives to yellow metal. Along with this, favourable FTAs, tax benefits by SEZs, are aiding the growth of exports when it comes to this product class.

Coloured Gemstones: The marginal slip in this product class is characteristic and is barely dependent on any economic factors. A minor upswing or downswing is usually observed owing to factors like availability, and other logistical factors.

Commenting on the same, Collin Shah, Managing Director of Kama Jewelry, said “The US remains our single largest export market, accounting for nearly 30% of India’s gem and jewellery exports, and the sharp fall in shipments is a serious concern. The additional 25% tariffs imposed since August have made Indian jewellery significantly more expensive for US buyers, leading to a clear drop in demand and a shift towards competing markets like Italy and China.

What makes the situation even more difficult is that domestic gold prices are at record highs. This has put enormous pressure on manufacturers, many of whom are struggling to manage costs while keeping their businesses running. Sadly, we are already seeing artisans and small manufacturers lose work, which has a real human impact beyond just the numbers.

The US is a market we have built strong, long-term relationships with, and prolonged uncertainty around tariffs risks damaging that trust. While the current situation is challenging, we remain hopeful that ongoing bilateral trade discussions will lead to a positive outcome and provide much-needed relief to the industry.”

Mr. Colin Shah, Founder and Managing Director of Kama Jewelry

Mr. Shah initiated into the diamond trade at the age of 17 with hands-on training in polished assortment, diamond manufacturing, and jewellery manufacturing. He is a first generation entrepreneur who started own business at the age of 21, exporting diamonds to Japan and Gulf along with the local market. He is a certified Gemologist from International Gemological Institute. He is Former Chairman of Gem Jewellery Export Promotion Council (GJEPC), and current member of FIEO.