India’s gems and jewelry sector saw a significant decline in October 2025. According to the Gems and Jewelry Export Promotion Council’s report, total gross exports fell by 30.57%, reaching $2.17 billion. Imports also dropped by 19.2%, reaching $1.27 billion. This decline is attributed to weaker demand in major markets like the US, Europe, and China, slow global growth, and the impact of US tariffs.
Cut and Polished Diamonds:
Exports of cut and polished diamonds fell by 27% in October, dropping to $1.02 billion. Imports also saw a 35.8% decline. The sector continues to be affected by US tariffs and the growing share of lower-priced lab-grown diamonds. Many manufacturers have reduced production and are focusing on managing existing stock rather than increasing new imports.
Rough Diamonds:
Between April and October, rough diamond imports stood at $6.45 billion, which is almost the same as last year, but the volume decreased by 6.6%. This indicates that companies are purchasing fewer diamonds by volume but focusing on higher-value rough stones.
Polished Lab-Grown Diamonds:
Polished lab-grown diamond exports fell by 34.9% in October, with a 12.95% decline between April and October. The increase in global supply, high gold prices, and changing customer preferences were major reasons for this decline.
Gold Jewelry:
Gold jewelry exports dropped by 24.6% in October. However, total exports from April to October showed an 11.9% increase. The combination of US tariffs and record-high gold prices led to order cancellations and reduced demand.
Plain Gold Jewelry:
Exports of plain gold jewelry saw a 39% decline in October, though the overall period recorded a 29.7% increase. Exports of studded gold jewelry dropped by 21.4%, as the 50% US tariff made it less competitive.
Silver Jewelry:
Silver jewelry exports increased by 9.9% from April to October, as young consumers preferred more affordable silver designs due to high gold prices. Meanwhile, colored gemstone exports saw a decline of 3.2%.
Colin Shah, Managing Director of Kama Jewelry, stated that the sector is still dealing with the effects of tariffs and inventory adjustments. However, with the wedding season in India and the holiday season in Western markets approaching, there are expectations of an increase in orders in the coming months.
