India’s gems and jewellery trade slumps in October amid global weakness, high tariffs: GJEPC

NEW DELHI: India’s gems and jewellery trade witnessed a sharp contraction in October 2025, as exports and imports declined across major segments due to subdued global demand, high interest rates, supply chain disruptions, and the impact of steep US tariffs, as per the data released by the Gems and Jewellery Export Promotion Council (GJEPC).

The GJEPC data shows that overall gross exports fell 30.57 per cent to $2,168.05 million (Rs 19,172.89 crore) in October 2025, from $3,122.52 million (Rs 26,237.10 crore) a year earlier. Imports also dipped 19.2 per cent to $1,276.8 million (Rs 11,299.6 crore) from $1,580.13 million (Rs 13,276.26 crore).

Commenting on the data, Colin Shah, managing director of Kama Jewellery, said, “The impact of trade tariffs imposed earlier is now being felt, leading to higher costs and reduced buying, while manufacturers are also adjusting inventory after the festive season”.

As per GJEPC, the decline in gems & jewellery exports and imports in October is driven by weaker demand in major markets (US, Europe, China) due to slower economic growth, high interest rates, and cautious consumer spending. Geopolitical uncertainties and supply chain disruptions also impacted trade.

Domestically, fluctuating gold and diamond prices, limited financing for exporters, and adjustments in the lab-grown diamond sector contributed to reduced imports and exports. Currency fluctuations and a stronger US dollar further affected price competitiveness and trade volumes, added the GJEPC.

Exports of cut and polished diamonds plunged 26.97 per cent to $1,025.99 million (Rs 9,071.41 crore) in October, while imports fell an even sharper 35.76 per cent to $132.95 million (Rs 1,176.7 crore). GJEPC highlighted the dual blow of new US tariffs, including reciprocal measures, and intensifying competition from lab-grown diamonds (LGDs), which are priced far lower, eroding margins for natural diamonds.

Manufacturers affected by tariffs have cut back production, and with global demand only slowly recovering, the sector is focusing on stock optimisation rather than fresh imports, said the council. Between April and October 2025, imports of rough diamonds dipped marginally by 0.22 per cent to $6,451.60 million, even as rupee value rose 3.19 per cent. Import volumes, however, saw a notable drop of 6.57 per cent, falling to 555.07 lakh carats from 594.13 lakh carats last year.

The steeper volume decline suggests a shift toward sourcing higher-quality, higher-value rough stones, as manufacturers adjust procurement to match slower global demand. Exports of polished lab-grown diamonds fell 34.90 per cent in October to $94.37 million (Rs 834.45 crore). For the April-October period, LGD exports dropped 12.95 per cent to $681.18 million.

Exports of gold jewellery declined sharply in October, falling 24.61 per cent to $850.15 million, as the 50 per cent US tariff rendered Indian products uncompetitive and led to order cancellations. However, in the April-October 2025 period, gold jewellery exports were up 11.9 per cent to $6,645.63 million, supported by higher gold prices and robust early-year demand.

The gross export of silver jewellery (Provisional, April 2025 – October 2025) at $717.78 million (14.36 per cent in Rs terms) represents an improvement over the corresponding figure of $652.95 million (Rs 5,465.16 crore) for the prior year. The silver jewellery exports of April-October 2025 increased by 9.93 per cent in USD terms and 14.36 per cent in INR terms due to the high price of gold in the current year. (ANI)