India’s exports of cut and polished diamonds have fallen to their lowest level in nearly two decades, as reported by the Indian Gems and Jewellery Export Promotion Council (GJEPC).
The decline is attributed to a decrease in demand from key markets such as the US and China, reported Reuters.
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The fiscal year 2024/25 (FY24/25), ending in March, saw a 16.8% year-on-year drop in these exports, totalling $13.3bn.
This downturn has had a ripple effect, reducing overall gem and jewellery exports by 11.7% to $28.5bn compared with $32.28bn in the previous year, a four-year low.
In response to the reduced demand for polished diamonds, Indian processors have cut back on rough diamond imports by 24.3%, bringing the total to $10.8bn.
Despite the overall downturn, there was a slight uptick in March, with a 1% year-on-year increase in gem and jewellery exports to $2.56bn. This was largely due to exporters accelerating shipments in anticipation of US tariffs.
US President Donald Trump had initially planned a 27% tariff on imported Indian goods from 9 April as part of a broader tariff strategy, but later announced a 90-day suspension of the measure.
GJEPC vice-chairman Shaunak Parikh said: “US buyers were loading up in March before the tariffs kicked in. Indian exporters were also rushing to ship out US orders first, so they wouldn’t get hit with those extra costs.”
Despite the temporary tariff reprieve, a major Mumbai-based exporter expressed doubts about a recovery in India’s gems and jewellery exports this year, citing the US tariffs as a significant factor in global market disruption and weakened buyer confidence.
In a related development, Indian state-run miner NMDC recently announced plans to produce 6,500 carats of diamonds worth $3.4m this fiscal year from the Panna mine in Madhya Pradesh.
