India gems and jewellery exports fall to five-year low on US tariffs

MUMBAI: India’s gems and jewellery exports in the 2025/26 fiscal year dipped 3.3% from a year earlier to their lowest level in five years, as shipments to top buyer the U.S. nearly halved, a leading trade body said on Wednesday, reflecting the impact of tariffs and duties.

Gem and jewellery exports in the year to the end of March fell to $27.72 billion, the lowest since 2020/21, when pandemic-led lockdowns disrupted trade, and down from $28.7 billion in the previous year, the Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.

Shipments to the U.S. fell 45% from a year earlier to $5.09 billion, as exports were disrupted for several months after Washington imposed reciprocal tariffs and later added a further 25% duty on Indian goods, GJEPC data showed.

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Cut and polished diamond exports, which usually account for nearly half of overall gem and jewellery shipments, fell 8.5% year-on-year to $12.16 billion, the lowest in more than two decades, the GJEPC said.

India is the world’s largest cutting and polishing hub, handling nine out of every 10 diamonds processed globally.

Even though exports to the U.S. fell due to tariff concerns, markets such as the United Arab Emirates, Hong Kong, Australia, and Canada showed strong growth, said Kirit Bhansali, chairman of GJEPC.

“The anticipated implementation of free trade agreements with the UK and EU this year is expected to further support the growth of India’s gem and jewellery exports,” he said.