Export of gems and jewellery declines by 7% in Jan

Exports of gems and jewellery in January 2025 declined by 7.01 per cent to USD 2237.14 million, compared to USD 2405.78 million for the same period last year, according to data released by the Gem & Jewellery Export Promotion Council (GJEPC). This is due to the economic uncertainty looming in the market on the back of tariff threats by US President Donald Trump right after he arrived in power again. The imports of gems and jewellery for January 2025 stood at USD 1421.61 million, showing a decline of 37.83% as compared to USD 2286.55 million for the same period last year. While there may be multiple factors like less demand due to the end of the wedding season, this also indicates the strengthening of the Indian gems and jewellery sector where the domestic demand is met by domestic jewellery manufacturers, thus having less to no reliance on international players for finished jewellery products.

Export of Cut & Polished diamonds declined by 12.48% in January 2025, standing at USD 1015.98 million compared to 1160.79 million for the corresponding period last year. As consumer demand remains subdued in two major markets of the world, there is a ripple effect of this on diamond exports from India, the largest cutting and polishing hub of the world.

The imports of cut & polished diamonds saw a decline of 67.04%, which stood at USD 54.0 million when compared to USD 163.87 million for the same period last year.

Imports of rough diamonds stood at USD 8746.70 million in January 2025, showing a decline of 22.49% when compared with the imports for the same period last year which stood at USD 11284.26 million. This decline is due to the weak demand in the international markets owing to the economic uncertainty caused by the earlier geo-political tensions and now with Trump’s tariff threats. This has compelled consumers to invest in safe-haven assets like gold compared to diamonds, which is a non-yielding asset.

The export of polished Lab Grown Diamonds during January 2025 stood at USD 85.44 million showing a decline of 24.95% as compared to USD 113.85 million for the previous year. This is due to the weak demand in the international markets. Also, price fluctuation in this category is another reason which is pushing demand downwards in the overall global markets.The export of gold jewellery in January 2025 stood at USD 949.46 million, showing a decent growth of 20.48% compared to USD 788.06 million for the same period last year. This is due to global economic uncertainty which has pushed consumers to invest in safe-haven assets like gold which has been witnessing constant price rises.Export of coloured gemstones during January 2025 stood at USD 353.92 million (in Rs. 2979.69 crores) witnessing a decline of 9.62% compared to USD 391.57 million (Rs. 3238.89 crores) for the same period last year. There is a niche category of buyers for coloured gemstones and while there maybe a downtrend, this segment will not be affected at large.

Commenting on the export performance Colin Shah, MD, 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.”