Kirit Bhansali, chairman of the Gem and Jewelry Export Promotion Committee (GJEPC), attributed the sharp decline to geopolitical tensions, the U.S. economy slowed down and completely stopped diamonds purchased from China, traditionally the second largest buyer behind the U.S.
India plays an important role in the global diamond supply chain, with 9 of the 10 natural diamonds cut and polished in the country mainly in Surat.
Overall gem and jewelry exports in fiscal 25 fell 11.72% to $28.5 billion, down from $2.28 billion in fiscal 224, according to GJEPC.
This marked a significant decline in the post-pandemic surge in fiscal 22, when export rates reached $39.57 billion, driven by global revenge purchases.
2024-25 is particularly challenging for the industry due to the Russian-Ukrainian and Israel-Hamas wars, while the U.S. slowdown has affected gem and jewelry exports. In addition, due to consumers’ concerns about the value of resale, China completely withdraws from buying diamonds. Gold jewelry exports were the most resilient, down just 0.11% to $11.21 billion, and GJEPC said the downturn in exports also led to a huge drop in diamond imports in the top 24.27%, which reduced huge diamond imports, which was $1.425 billion in $1.425 billion.
Tariff talks:
Bhansali said GJEPC is awaiting the outcome of India’s ongoing tariff negotiations with the United States before releasing its prospects for exports of gems and jewelry in fiscal 26.
The industry formally put forward key requirements for the proposed Bilateral Trade Agreement of India (BTA), which was presented to the government at a meeting with Prime Minister’s Chief Secretary Shaktikanta Das.
“We urge U.S. jewelry import tariffs should be maintained within 10%, currently at 6%, and import responsibilities in the United States should continue to be zero because this is a raw material used for jewelry manufacturing, which also happens in the United States.”
He added that the U.S. government should include it in Annex II of the Goods, which were abandoned from their mutual tariffs.
To address the broader trade imbalance, GJEPC proposed to expand the same countdown offer to the United States with India on imports of gold and silver bars under the Integrated Economic Partnership Agreement (CEPA).
The Council also urged the government to make rapid relief to the gem and jewelry sector under the early harvest section of the BTA. There is only a three-month grace period before the U.S. imposes a 26% reciprocal tariff on Indian-made goods, and the industry will worry that it may stagnate if it doesn’t take swift action.
Exports of gems and jewellery
FY20 – US$35.59 billion
FY21- $25.51 billion
FY22- $39.51 billion
FY23 – $37.74 billion
FY24- $32.29 billion
FY25-USD 28.5 billion
