The Gems and Jewellery Export Promotion Council (GJEPC) revealed that exports of cut and polished diamonds fell by 16.8% year-on-year to $13.3 billion, marking a significant downturn for an industry that typically accounts for nearly half of India’s gem and jewellery shipments.
As the world’s largest centre for cutting and polishing diamonds—handling about 90% of the global output—India remains highly vulnerable to shifts in international economic sentiment, particularly from the U.S., its largest customer.
The broader gem and jewellery sector also felt the strain, with overall exports tumbling 11.7% to $28.5 billion, their lowest in four years, compared to $32.28 billion in the previous fiscal year. The slump in demand for polished stones prompted a 24.3% cut in rough diamond imports, which fell to $10.8 billion.
Despite the dismal annual performance, March brought a brief glimmer of hope. Exports rose 1% year-on-year to $2.56 billion as Indian exporters accelerated shipments in anticipation of a proposed 27% U.S. tariff on imported Indian goods, originally set to take effect on April 9.
Although U.S. President Donald Trump later announced a 90-day delay on the tariff implementation, exporters had already begun ramping up shipments to beat the deadline.
“U.S. buyers were loading up in March before the tariffs kicked in. Indian exporters were also rushing to ship out U.S. orders first, so they wouldn’t get hit with those extra costs,” said Shaunak Parikh, vice-chairman of GJEPC.
However, industry insiders remain cautious. A prominent Mumbai-based exporter told Reuters that a meaningful recovery is unlikely in 2025, citing global market instability and waning buyer confidence sparked by the looming tariffs.
With geopolitical tensions and protectionist policies continuing to cloud the global trade outlook, India’s diamond industry faces an uncertain road ahead.
