India’s gem and jewellery exports to the United States — traditionally the sector’s biggest market — slumped sharply by 44.4% year-on-year in the April–December 2025 period, declining to US$ 3.86 billion from US$ 6.95 billion in the same period of the previous year, industry data show.
The Gem & Jewellery Export Promotion Council (GJEPC) attributed the steep drop to tariff pressures in the US market and weaker discretionary consumer demand, with exports in December 2025 falling more than 50% compared with the year-earlier month.
Kirit Bhansali, GJEPC chairman, said the United States still accounts for nearly 30% of India’s gem and jewellery exports, making the contraction a major concern for the sector. He warned that prolonged tariff uncertainty could affect the long-term viability of the US market for Indian exporters.
Despite the downturn in US shipments, India’s overall gem and jewellery exports remained broadly stable at around US$ 20.75 billion for April–December 2025, only a marginal decline of 0.4% year-on-year. The relatively flat performance was supported by growth in other key markets and favourable currency movements.
Market Diversification Offsets US Slowdown
Export destinations such as the United Arab Emirates, Hong Kong and Australia posted substantial increases, helping cushion the blow from the US market. Exports to the UAE rose more than 28%, while shipments to Hong Kong and Australia jumped close to 28% and nearly 40%, respectively.
Within product segments, gold jewellery, silver and platinum jewellery exports recorded robust gains, even as cut and polished diamond and lab-grown diamond shipments contracted.
Industry Outlook
The sharp fall in US exports comes amid tariff hikes and competitive pressure from other jewellery exporters that benefit from free-trade agreements. Industry stakeholders say the slump underscores the need for market diversification and broader trade ties, including leveraging free trade agreements with strategic partners to support long-term growth.