India’s gems and jewellery exports witnessed a sharp decline of over 35% in March, as escalating tensions linked to the West Asia conflict involving the United States and Iran disrupted trade flows and logistics, according to the Gem and Jewellery Export Promotion Council.
Exports dropped to about $27.7 billion (₹2.44 lakh crore) during the month, compared to the previous year, as shipment routes were severely affected. Industry officials said that heightened geopolitical risks led to a spike in insurance premiums and delays in cargo movement, with even diamond consignments struggling to reach key markets.
The disruption was particularly significant given the Middle East’s role as a critical trade hub for India’s gem and jewellery sector. Airspace restrictions, logistical bottlenecks, and uncertainty in the region slowed both exports and the movement of raw materials, impacting the overall supply chain.
Despite the sharp monthly decline, the industry showed some resilience over the full fiscal year, with only a marginal dip in overall exports. Demand from alternative markets such as the Gulf Cooperation Council (GCC), the UK, and the European Union helped partially offset weaker demand in traditional markets like the US and China.
GJEPC Chairman Kirit Bhansali noted that while the ongoing conflict has posed immediate challenges, it could also present long-term opportunities. The council is exploring the possibility of positioning India as a global hub for rough diamond trading, supported by growing interest from companies in the UAE.
Industry stakeholders remain cautiously optimistic, expecting exports to recover once geopolitical tensions ease in the coming months, while continuing to diversify markets and strengthen supply chain resilience.