India’s exports of cut and polished diamonds have hit their lowest point in nearly two decades, reflecting the industry’s vulnerability to slowing demand in key markets like the United States and China. According to data released by the Gems and Jewellery Export Promotion Council (GJEPC) on Monday, polished diamond exports fell by 16.8 per cent year-on-year to $13.3 billion in the 2024-25 fiscal year, the lowest since the early 2000s.
Global Slowdown and Tariff Uncertainty Weigh on Industry
India processes approximately 90% of the world’s diamonds, making it highly sensitive to shifts in global consumer sentiment. The US, its biggest buyer, has shown signs of spending slowdown amid economic uncertainties and shifting priorities. China’s weakening post-COVID recovery has added to the woes, leading to a significant demand contraction.
The sharp decline in polished diamond shipments contributed to an 11.7 per cent drop in overall gems and jewellery exports, which fell to $28.5 billion—the lowest in four years—from $32.28 billion in FY24. In response to reduced demand, rough diamond imports were also scaled back, declining by 24.3 per cent to $10.8 billion.
Also read: US Tariffs to Have Limited Impact on Indian Exports: Crisil
Tariff Pause Spurs Short-Term Surge in March
Interestingly, the month of March saw a 1 per cent year-on-year rise in gems and jewellery exports to $2.56 billion, as exporters rushed to fulfil orders ahead of the now-paused US tariffs. President Donald Trump had initially announced a 27 per cent reciprocal tariff on Indian goods starting April 9, only to temporarily defer it by 90 days.
“US buyers were loading up in March before the tariffs kicked in,” said Shaunak Parikh, Vice-Chairman of GJEPC. “Indian exporters were also rushing to ship out US orders first, so they wouldn’t get hit with those extra costs.”
Despite this short-term bump, industry insiders are not optimistic. One major Mumbai-based exporter told Reuters that a full recovery in 2025 looks unlikely, citing shaken buyer confidence and persistent market volatility triggered by ongoing tariff uncertainty.
