India’s gems and jewellery exports dropped by 15.81% year-on-year in May 2025 to $2,263.42 million (Rs.19,260.81 crore), according to data released by the Gem & Jewellery Export Promotion Council (GJEPC). The decline, attributed largely to new tariff announcements by the United States, marks a continued period of subdued global demand in key segments like cut and polished diamonds and lab-grown diamonds.

Exports during the same period last year stood at $2,688.38 million (Rs.22,414.02 crore), reflecting a significant contraction in overall market performance.

Among the hardest-hit categories was cut and polished diamonds, which saw a steep 35.49% decline to $949.70 million (Rs.8,089.81 crore), compared to $1,472.08 million (Rs.12,272.03 crore) in May 2024. Exports of polished lab-grown diamonds also fell 32.76% to $80.90 million (Rs.689.71 crore), down from $120.32 million (Rs.1,003.06 crore).

Despite the downturn in diamonds, gold jewellery exports showed resilience, rising 17.24% to $997.50 million (Rs.8,482.61 crore). Industry experts link this surge to geopolitical tensions in the Middle East, which have bolstered the precious metal’s appeal as a safe-haven investment.

Silver jewellery exports, however, declined 17.59% to $150.08 million (Rs.1,281.92 crore) over April–May, while coloured gemstone exports were marginally down 1.13% to $62.51 million (Rs.533.08 crore) for the same two-month period.

Commenting on the trend, GJEPC Chairman Kirit Bhansali noted, “The overall exports continue to decline and in May the dip was 15.81% mainly due to the tariffs announced by the US. However, gold jewellery exports have gone up due to the continuing geopolitical tensions in the Middle East, which has increased the demand for the precious metal as a safe haven.”

With global economic uncertainties and trade policy shifts continuing to affect the sector, industry stakeholders are calling for renewed focus on diversification, domestic value addition, and targeted promotion in alternative markets.