The gems and jewellery exports were down 14 per cent last month at $1.63 billion against $1.90 billion logged in the same period last year due to economic uncertainties around US President Donald Trump’s tariff announcements, which has led to weak demand in key markets.
In rupee terms, it dipped 12 per cent to ₹13,979 crore (₹15,837 crore), as the recent geopolitical unrest in West Asia has further disturbed the global consumption demand, according to the Gem and Jewellery Export Promotion Council data.
On the other hand, imports of gems and jewellery were down 3 per cent to $1.55 billion ($1.60 billion), as the domestic demand is stagnant due to high gold prices and economic uncertainties clubbed with a comparatively dull period for gold buying.
However, the onset of festive and wedding season is expected to bring back the lost vigour in terms of demand.
Diamond import-export
Cut and polished diamond exports dipped 23 per cent to $779 million ($1.02 billion) last month as major markets such as the US, China and Europe registered reduced consumer spending on luxury goods due to inflation, recession fears or high interest rates that has led to a decline in demand for polished diamonds.
Similarly, imports of cut and polished diamonds were down 7 per cent at $72 million ($77 million).
Rough diamonds imports dropped 5 per cent to $3.22 billion ($3.40 billion) due to muted demand from major markets such as the US and China. This has also led to traders clearing their existing inventories as the fear of uncertain market conditions.
Polished Lab Grown Diamonds exports fell 26 per cent to $67 million ($89 million) as China increased lab-grown diamond production, resulting in a stringent price competition in the international markets.
Gold jewellery increased 6 per cent last month to $630 million ($596 million) due to increased demand from West Asia, the US and South-East Asia.
Platinum jewellery exports were up 14 per cent at $46 million ($40 million) on higher demand from the US, Japan and China. Coloured gemstones shipments increased 6 per cent to $97 million ($91 million) on bridal jewellery demand.
Global uncertainties
Colin Shah, MD, Kama Jewelry, said the consistent decline of exports was largely due to the uncertainties that is still looming around the impending tariffs being announced by the US President.
Moreover, he said the prolonged geopolitical tensions in West Asia and Russia-Ukraine continue to act as a deterrent to the demand, thereby adding further woes to the already ailing sector.
Going forward, we expect trade activities to be discreet till Trump tariffs are completely rolled out, as this will decide how the industry will navigate with the new tariff regime, he added.
