India's Gem and Jewellery Exports Maintain Stability Amid Global Challenges
The Gem and Jewellery Export Promotion Council (GJEPC) has reported that India's gem and jewellery exports remained broadly stable in the recent period, showcasing resilience in a complex international trade environment. This overall steadiness, however, masks significant regional disparities and specific market pressures that are shaping the sector's performance.
Sharp Contraction in US Market Impacts Export Figures
A critical factor influencing the export outcome was a sharp and substantial contraction in shipments to the United States. As India's largest gem and jewellery export destination, the US market experienced a decline of over 45% in imports from India. This dramatic drop is primarily attributed to elevated tariffs and persistent pricing disadvantages that have made Indian products less competitive in the American marketplace.
The imposition of higher tariffs has directly increased the cost of Indian gem and jewellery items for US buyers, while pricing disadvantages—stemming from factors like production costs, currency fluctuations, and competitive pressures from other exporting nations—have further eroded market share. This dual challenge of tariffs and pricing has created a significant headwind for exporters targeting the US, which traditionally accounts for a major portion of India's overseas sales in this sector.
Broader Export Stability and Sector Resilience
Despite the severe downturn in the US, the overall export figures remained broadly stable, indicating that other markets may have absorbed some of the shock or that diversification efforts are beginning to yield results. The gem and jewellery industry, a key contributor to India's export economy, has demonstrated an ability to navigate turbulent conditions, though the reliance on the US market remains a vulnerability.
Industry analysts suggest that the stability could be due to increased shipments to alternative destinations or a shift in product mix to higher-value items that are less affected by tariff barriers. The GJEPC's role in promoting exports and addressing trade issues is crucial in this context, as stakeholders seek to mitigate the impact of external factors like tariffs and global economic shifts.
Future Outlook and Strategic Adjustments
Looking ahead, the sector faces the ongoing challenge of reducing dependence on the US market while enhancing competitiveness through innovation, cost management, and trade negotiations. The over 45% decline in US exports serves as a stark reminder of the risks associated with concentrated market exposure and the need for agile strategies in international trade.
As of the latest update on 15 February 2026, the situation underscores the importance of monitoring trade policies and adapting to dynamic global demands. The gem and jewellery industry's ability to maintain broad stability amidst such a significant contraction in its primary market highlights both its resilience and the urgent need for strategic recalibration to sustain growth in the face of elevated tariffs and pricing pressures.
