Archive · 15 Nov 2025
India's Gems and Jewellery Trade Declines Sharply in October
Imagine India sells lots of pretty jewels and shiny diamonds to other countries.
In October, they sold much less of these things than last year, about 31% less.
This is because people in countries like America and Europe weren't buying as much.
They might be worried about their money, or things have gotten more expensive.
Also, there were some global issues and problems getting items delivered.
On top of that, new taxes from the US made Indian gold jewelry very expensive for Americans.
It's also harder to sell regular diamonds when cheaper, man-made ones are available.
So, while they sold more silver jewelry, overall, India's jewelry exports took a big hit last October.
India's gross gems and jewellery exports fell by 30.57% to $2,168.05 million in October 2025.
Exports of cut and polished diamonds declined by 26.97%, and polished lab-grown diamond exports dropped by 34.90% in October.
Gold jewellery exports saw a significant decrease of 24.61% in October due to US tariffs impacting competitiveness.
Imports of gems and jewellery also fell by 19.2% in October, with a steeper decline of 35.76% for cut and polished diamonds.
Weak global demand in major markets, high interest rates, US tariffs, and competition from lab-grown diamonds are key factors contributing to the slump.
- Who
- Gems and Jewellery Export Promotion Council (GJEPC) and manufacturers like Kama Jewellery
- What
- A sharp contraction in overall gross exports and imports of gems and jewellery.
- When
- October 2025
- Where
- India
- Why
- A combination of subdued global demand in key markets (US, Europe, China), high interest rates, cautious consumer spending, geopolitical uncertainties, supply chain disruptions, and domestic factors like fluctuating prices, limited financing, and currency fluctuations. Additionally, new US tariffs and competition from lab-grown diamonds have significantly impacted exports.
External Factors
Internal Factors
Demand and Tariffs
External Factors
Subdued global demand in major markets like the US, Europe, and China, driven by slower economic growth, high interest rates, and cautious consumer spending, along with geopolitical uncertainties and supply chain disruptions, have significantly impacted trade.
Internal Factors
Domestically, fluctuating gold and diamond prices, limited financing for exporters, currency fluctuations, and a stronger US dollar have affected price competitiveness and trade volumes.
US Tariffs and Competition
External Factors
New US tariffs, including reciprocal measures, have rendered Indian products uncompetitive, leading to higher costs, reduced buying, and order cancellations, particularly affecting gold jewellery exports.
Internal Factors
Intensifying competition from lower-priced lab-grown diamonds (LGDs) is eroding margins for natural diamonds, contributing to declines in both polished and LGD exports.
- Total Gross Exports (October 2025)
- $2,168.05 million
- Overall Export Decline (Year-on-Year, October)
- 30.57%
- Cut and Polished Diamonds Export Decline (October)
- 26.97%
- Polished Lab-Grown Diamonds Export Decline (October)
- 34.90%
- Gold Jewellery Export Decline (October)
- 24.61%
- Imports Decline (October)
- 19.2%
- Rough Diamonds Import Decline (April-October)
- 0.22%
