India’s Gem & Jewellery Exports Hold at $19 Billion Despite US Tariffs: GJEPC
Jewelry Exports: The country's gem and jewelry exports have been affected by US tariffs, resulting in a 30 percent drop in exports. Despite this, India's gem and jewelry exports remained stable in 2025 due to India's free trade agreements with new countries.
According to Gem and Jewelry Export Promotion Council (GJEPC), despite the US tariffs and a slump in demand from China, gem and jewelry exports from India remained stable in the year 2025 with the help of Free Trade Agreements (FTAs). Gem and jewelry exports are currently valued at $19 billion as of November last year. GJEPC Chairman Kirit Bhansali said that gem and jewelry exports are maintaining the level of $19 billion in new markets.
He noted that China has experienced an economic slowdown, but diversification has mitigated its impact. The free trade agreement has assisted in mitigating the slowdown experienced by countries such as West Asia, Europe, and Africa. Exports to countries such as the United Arab Emirates, New Zealand, Australia, the United Kingdom, and Oman are increasing rapidly; exports to the United Arab Emirates are up by close to 30 percent in the current year.
He explained that our exports to the US market have declined by more than 30 percent following the tariff hike. Bhansali said that 2026 may be difficult due to uncertainty between the US and China, but market diversification and policy support from the FTA will remain essential to the region's export strategy. It would not be wrong to say that the US is a significant market for us, and we do not want to lose it. Under the leadership of Prime Minister Narendra Modi, we hope that trade talks will progress soon.
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Oman is emerging as a manufacturing and trading hub, seen as a gateway to countries around Africa and the GCC (Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait, and Bahrain). Bhansali stated that interest in setting up factories is growing, aided by land, human resources, and labor visas. This, along with strong demand for several other categories, such as polished diamonds and gold jewelry, has also increased. This could provide opportunities for Indian jewelry manufacturers and exporters to diversify markets. Demand for plain gold jewelry has increased by 80 percent in this region.
The industry reports that gold demand remains strong domestically, with consumers accepting the high prices of gold and silver. Despite this, gold prices remain at record levels, leading to cautious purchases. Domestic demand may increase due to the wedding season between December 2025 and March 2026. However, prices are expected to remain high. While exports may remain stable in volume terms due to high prices, volumes by weight may decline by 15 to 20 percent this calendar year.
He added that demand for natural diamonds has seen an 11 to 15 percent growth. Currently, diamond prices appear to be stabilizing after the recent weakness. I don't expect prices to fall further from here. If trade between the US and India picks up, prices could rise.
