India's Gems And Jewellery Exports Fall 15% In May 2025

New Delhi, Jun 19 (KNN) India's gems and jewellery sector recorded a significant decline in export performance during May 2025, with shipments falling 15.81 per cent compared to the same period last year. 

According to data released by the Gems and Jewellery Export Promotion Council (GJEPC), total exports reached USD 2,263.42 million, marking a substantial decrease from the USD 2,688.38 million recorded in May 2024.

The sector's import activity also contracted during the month, declining 12.96 per cent year-on-year to USD 1,689.61 million, compared to USD 1,941.29 million in the corresponding period of 2024. 

Industry analysts attribute the downturn to prevailing global uncertainties, including uncertainties surrounding US tariff policies and ongoing geopolitical tensions affecting international trade flows.

The diamond segment experienced the most severe impact, with cut and polished diamond exports plummeting 35.49 per cent to USD 949.70 million from USD 1,472.08 million in May 2024. 

Import activity in this category showed a similar trajectory, falling 38.76 per cent to USD 84.80 million. Rough diamond imports also declined, dropping 5.46 per cent to USD 2,262.21 million. 

Industry sources identified falling diamond prices and excessive inventory levels as primary contributing factors to the segment's poor performance.

The lab-grown diamond category faced comparable challenges, with polished lab-grown diamond exports declining 32.76 per cent to USD 80.90 million, down from USD 120.32 million in May 2024. 

The decline was attributed to weakening overseas demand, particularly from key markets including the United States and China.

In contrast to the broader downturn, gold jewellery exports demonstrated resilience, recording a 17.24 per cent year-on-year increase to USD 997.50 million, compared to USD 850.81 million in the previous year. 

The GJEPC attributed this growth to increased global demand for wearable gold products.

The coloured gemstones segment showed minimal movement, with exports recording a marginal decline of 1.13 per cent to USD 62.51 million, compared to USD 63.22 million in May 2024.

Colin Shah, Managing Director, Kama Jewelry, commented on the sector's performance, stating that the industry continues to experience the effects of US-imposed tariffs and geopolitical tensions in regions including the Middle East and Eastern Europe. 

However, Shah noted that improving trade dialogue between the United States and China could provide some relief to the sector.

The GJEPC has indicated expectations for continued market volatility in the coming months and has emphasised the importance of closely monitoring global trade developments. 

The council's projections suggest that external factors will continue to influence India's gems and jewellery export performance in the near term.

(KNN Bureau)