Whalesbook
US Market Woes
India's gem and jewellery exports to the United States experienced a sharp 44.42% contraction year-on-year, totaling US$ 3.86 billion during April-December 2025. This significant decline follows a US$ 6.95 billion performance in the same period last year. Exports in December alone saw a 50.44% year-on-year drop.
Tariff Pressures and Demand Slump
According to the Gem & Jewellery Export Promotion Council (GJEPC), tariff-related pressures and subdued discretionary demand are the primary drivers behind the slump. Kirit Bhansali, Chairman of GJEPC, stated that the US, India's largest export destination accounting for nearly 30% of shipments, poses a serious concern. Prolonged tariff uncertainty could threaten the long-term viability of this market for Indian exporters.
Resilience and Diversification
Despite the significant downturn in the US, India's overall gem and jewellery exports remained remarkably stable, registering a marginal dip of 0.41% to US$ 20.75 billion in April-December 2025. In rupee terms, exports grew by 3.69%, bolstered by currency movements and steady trade flows.
Shifting Trade Dynamics
Growth in gold, silver, and platinum jewellery exports helped offset a moderation in cut and polished diamonds and lab-grown diamonds. Exports to the United Arab Emirates surged by 28.08% to US$ 6.89 billion, while shipments to Hong Kong increased by 28.19% to US$ 4.25 billion. Australia also recorded substantial growth, up 39.83% to US$ 277.76 million.
Leveraging Trade Agreements
Bhansali emphasized the critical role of recent Free Trade Agreements (FTAs) with the UAE and Australia, alongside upcoming agreements with the UK, Oman, and New Zealand. These pacts are expected to enhance competitiveness by reducing duties and easing trade barriers. The industry is confident that ongoing bilateral trade discussions and new agreements will open new markets and solidify India's global standing.
Market Expansion Strategy
Market diversification is a key strategic shift, with exporters expanding their footprint across West Asia, Asia-Pacific, Australia, Latin America, and other emerging regions. This builds a more balanced and future-ready export base.
Gold Jewellery Value Surge
Plain gold jewellery exports recorded a 7.72% value growth to US$ 3816.97 million. This increase was primarily value-led, as gold bar prices rose by 52% year-on-year, boosting export realisations despite moderated volumes.