India's gem and jewellery exports to the United States suffered a severe blow during the first nine months of the 2025 financial year. Data from the Gems and Jewellery Export Promotion Council reveals a sharp contraction. Exports to the US plummeted by 44% year-on-year between April and December 2025.
A Steep Decline in Key Market
The value of these exports dropped to $3.86 billion. This is a stark fall from the $6.95 billion recorded in the same period the previous year. The downturn accelerated in December alone. Exports for that single month crashed by over 50% compared to December 2024.
Industry leaders directly link this collapse to tariff pressures from the United States. The imposition of an additional 25% duty since August has severely dampened American demand for Indian jewellery.
Industry Voices Concern Over Jobs and Future
Haresh Acharya, a director at the India Bullion and Jewellers' Association, outlined the grim reality. He stated that these tariffs have already caused significant demand loss. The impact is rippling through the entire jewellery value chain, resulting in job cuts. Many artisans and manufacturers have been pushed out of work.
"The industry has taken a severe hit," Acharya said. He pointed out that competitors like Italy benefit from free trade agreements, while China faces lower tariffs. Combined with record-high domestic gold prices, the situation is critical. He warned that prolonged uncertainty could lead to even more severe consequences.
Kirit Bhansali, Chairman of the GJEPC, echoed these concerns. He noted that the US remains India's largest export destination, absorbing nearly 30% of gem and jewellery exports. The sharp decline is a serious worry. Bhansali flagged risks to the long-term viability of the US market for Indian exporters if tariff issues persist.
Despite the challenges, Bhansali expressed hope. He affirmed the industry's faith in the Indian government. He remains optimistic that ongoing bilateral trade talks will yield a positive and timely resolution.
Silver Linings and Market Stabilization
While the US market contracted sharply, the overall export picture showed signs of resilience. According to the GJEPC, total gem and jewellery exports for April-December 2025 aggregated $20.75 billion. This represents only a marginal dip of 0.41% from the previous year.
Diamonds Face Pressure, Jewellery Shines
The performance was mixed across different product categories. Exports of cut and polished diamonds showed stabilization after years of decline. December 2025 saw a slight 2.70% rise to $795 million. However, for the nine-month period, CPD exports were down 7.85% at $8.99 billion.
Polished lab-grown diamond exports continued to weaken, falling 10% to $840 million for the period.
In contrast, jewellery exports provided strong support. Total gold jewellery exports grew by over 7% to $8.67 billion. Silver jewellery exports surged by an impressive 44% to $1.1 billion. Platinum jewellery exports also jumped by nearly 50% to $195 million.
Diversification Drives Stability
A key factor behind this stability was the industry's successful pivot to new markets. Exports to countries with beneficial trade agreements saw robust growth.
- Shipments to the United Arab Emirates rose 28% to $6.89 billion.
- Exports to Hong Kong increased 28% to $4.25 billion.
- Shipments to Australia grew by almost 40% to $278 million.
This diversification, along with product mix optimization and value addition, helped offset the losses from the US market. The industry's ability to adapt highlighted its underlying strength even amid significant headwinds in its largest single destination.
