Shockwave Hits India! Jewellery Exports PLUMMET 30% - Is Your Portfolio Safe?

Author

Aditi Singh | Whalesbook News Team

Detailed Coverage:

India's vital gems and jewellery trade experienced a sharp decline in October 2025. Overall gross exports dropped by a significant 30.57% year-on-year, reaching $2,168.05 million (₹19,172.89 crore), down from $3,122.52 million a year ago. Imports also contracted, falling 19.2% to $1,276.8 million (₹11,299.6 crore). This downturn is primarily attributed to subdued global demand stemming from slower economic growth, elevated interest rates, and cautious consumer spending in major markets like the United States, Europe, and China. Geopolitical uncertainties and ongoing supply chain disruptions further exacerbated the situation.

Specific product categories showed notable decreases: exports of cut and polished diamonds fell 26.97%, while imports saw an even steeper drop of 35.76%. Exports of polished lab-grown diamonds also declined by 34.90%. Gold jewellery exports decreased by 24.61% in October, largely due to a significant US tariff making Indian products uncompetitive. Conversely, silver jewellery exports showed improvement in the April-October 2025 period.

Additional contributing factors include trade tariffs, currency fluctuations favouring a stronger US dollar, limited financing options for exporters, and domestic inventory adjustments post-festive season.

Impact This sharp contraction in a major export sector negatively impacts the financial performance and valuations of Indian jewellery companies. It highlights the sector's sensitivity to global economic conditions and trade policies, potentially affecting employment and foreign exchange earnings. Impact Rating: 6/10

Difficult Terms: Gross Exports: The total value of goods and services sold by a country to other nations. Imports: The value of goods and services purchased from other countries and brought into a country. Subdued Global Demand: A period where overall spending by consumers and businesses worldwide is low. High Interest Rates: The cost of borrowing money is elevated, making loans more expensive and potentially slowing down economic activity. Supply Chain Disruptions: Problems or interruptions in the process of moving goods from their origin to their final destination. US Tariffs: Taxes imposed by the United States on imported goods, increasing their cost. Cut and Polished Diamonds: Diamonds that have been mined, shaped, and finished for use in jewellery. Rough Diamonds: Diamonds in their natural, unshaped state as extracted from the ground. Lab-Grown Diamonds (LGDs): Diamonds created in a laboratory, chemically identical to natural diamonds but usually cheaper. Gold Jewellery Exports: The value of gold jewellery sold to foreign countries. Silver Jewellery Exports: The value of silver jewellery sold to foreign countries. Currency Fluctuations: Changes in the exchange rate between different currencies. Rupee Value: The worth of the Indian Rupee in relation to other currencies. Lakh Carats: A unit for measuring diamond weight; 'lakh' is a term for 100,000. So, '555.07 lakh carats' means 55,507,000 carats. Provisional: Data that is preliminary and subject to change.