Gems and jewellery exports fall 31% in October; tariffs and weak global demand weigh on trade

India’s gems and jewellery sector reported a sharp contraction in October, as trade data released by the Gem & Jewellery Export Promotion Council (GJEPC) showed broad-based declines across key product categories.

Industry executives expect the upcoming domestic wedding season and the holiday period in Western markets to provide some support to orders in the coming months.

Overall gross exports fell 30.57% year-on-year to $2.17 billion in October 2025, while imports declined 19.2% to $1.27 billion. The fall reflects weaker demand in major markets such as the US, Europe and China, slower global economic growth, and the impact of recent US tariffs on Indian jewellery.

Currency movements and higher gold and diamond prices also weighed on trade volumes.

Cut & polished diamonds

Exports of cut and polished diamonds declined 27% to $1.02 billion in October, with imports dropping 35.8% to $132.95 million. The sector continued to feel the effects of US tariffs and the expanding market share of lower-priced lab-grown diamonds.

Several manufacturers have scaled down production and are focusing on optimising existing inventories instead of increasing imports.

Rough diamonds

Rough diamond imports between April and October stood at $6.45 billion, broadly flat compared to last year, though import volumes fell 6.6%. The mismatch between value and volume suggests a shift toward sourcing higher-value rough stones rather than larger quantities.

Manufacturers appear to be recalibrating procurement strategies in response to muted global demand.

Polished lab-grown diamonds

Exports of polished lab-grown diamonds dropped 34.9% in October and 12.95% for the April–October period. Seasonal factors, competitive global supply, and a shift in consumer preference toward gold amid elevated prices contributed to the moderation.

Rupee-denominated figures showed a smaller decline, partly offsetting the fall in dollar terms due to currency movements.

Gold jewellery

Gold jewellery exports fell 24.6% in October, but year-to-date exports between April and October rose 11.9% to $6.64 billion. The US tariff regime led to cancellations and deferred orders in October, while record-high gold prices dampened consumer purchases in international markets.

Plain gold jewellery

Exports of plain gold jewellery fell 39% in October, though year-to-date shipments grew 29.7%. Higher gold prices and increased quantities supported cumulative growth, despite a temporary slowdown in October.

Studded gold jewellery

Studded gold jewellery exports registered a 21.4% decline in October, as the 50% US tariff reduced competitiveness and weakened demand in key markets, particularly the US and Europe.

Silver jewellery

Silver jewellery exports grew 9.9% in dollar terms during April–October, supported by a global shift toward more affordable alternatives to gold. Rising gold prices have encouraged younger consumers to turn to contemporary silver designs, driving higher export volumes.

Coloured gemstones

Coloured gemstone exports fell 3.2% in April–October. The segment, which caters to a niche global buyer base, remained sensitive to short-term design trends rather than broader economic factors. Higher demand for plain gold jewellery also softened purchases of gemstone-studded pieces.

Outlook

Colin Shah, Managing Director of Kama Jewelry, said the sector is experiencing the delayed impact of trade tariffs and post-festive inventory adjustments.

“Despite these challenges, the upcoming wedding season in India and the holiday season in Western markets are expected to support a recovery in orders,” he said.

He added that Maharashtra’s newly approved Gems & Jewellery Policy 2025 and the anticipated outcome of ongoing tariff negotiations in the US could offer further relief to the industry.