Export of Gems and Jewellery Declined by 7% in January 2025

Exports of gems and jewellery in January 2025 declined by 7.01% to USD 2,237.14 million, compared to USD 2,405.78 million in the same period last year, according to data released by the Gem & Jewellery Export Promotion Council (GJEPC). The decline is attributed to economic uncertainty and the tariff threats issued by US President Donald Trump following his return to power.

Imports of gems and jewellery for January 2025 stood at USD 1,421.61 million, marking a sharp decline of 37.83% compared to USD 2,286.55 million for the same period last year. The lower import figures indicate increased domestic demand being met by local jewellery manufacturers, reducing reliance on international players for finished jewellery products.

Cut & Polished Diamonds Witness a Decline

Exports of cut and polished diamonds declined by 12.48% in January 2025, standing at USD 1,015.98 million compared to USD 1,160.79 million in the same period last year. Weak consumer demand in key global markets has impacted diamond exports from India, which is the world’s largest hub for diamond cutting and polishing.

Imports of cut and polished diamonds fell significantly by 67.04%, amounting to USD 54.0 million in January 2025 compared to USD 163.87 million in January 2024.

Decline in Rough Diamond Imports

Imports of rough diamonds in January 2025 totalled USD 8,746.70 million, a 22.49% decline from USD 11,284.26 million in the same period last year. This reduction is linked to weak global demand amid ongoing geopolitical tensions and renewed tariff threats from the US administration. With investors shifting focus towards safe-haven assets like gold, demand for diamonds, a non-yielding asset, has been impacted.

Lab-Grown Diamonds See a Drop in Exports

Exports of polished lab-grown diamonds in January 2025 stood at USD 85.44 million, reflecting a 24.95% decline compared to USD 113.85 million in January 2024. Weak global demand and price fluctuations in this segment have contributed to the downturn.

Gold Jewellery Exports See Positive Growth

In contrast, the export of gold jewellery registered an increase, reaching USD 949.46 million in January 2025, up by 20.48% from USD 788.06 million in the previous year. Global economic uncertainty has driven investors towards gold, which has been witnessing consistent price appreciation.

Coloured Gemstones Segment Records a Dip

Exports of coloured gemstones in January 2025 stood at USD 353.92 million (₹2,979.69 crore), marking a 9.62% decline compared to USD 391.57 million (₹3,238.89 crore) in January 2024. The coloured gemstones segment caters to a niche market, and while there is a temporary downturn, it is expected to remain stable over time.

Industry Experts React

Commenting on the sector’s performance, Colin Shah, MD of Kama Jewelry, said, “With Trump coming back into power and aggressively pushing massive tariff hikes, the impact of the same is visible on overall global trade activities. We are in a wait-and-watch situation to monitor Trump’s tariff stance, which will decide how the global market will navigate through these times. However, a gradual rebound in trade activities could be seen in the upcoming months once there is absolute clarity.”

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