India's Gem and Jewellery Exports Drop 11.7% Amid Global Challenges

India's gem and jewellery exports have faced significant challenges, dropping by 11.72% in the 2024-25 fiscal year to $28.5 billion, largely due to sluggish demand from major markets like the U.S. and China, according to the Gems and Jewellery Export Promotion Council (GJEPC). The export of cut and polished diamonds fell to $13.3 billion, marking a 16.8% decline and the lowest level in nearly two decades, impacted by U.S. tariffs and geopolitical unrest. In March, exporters rushed to fulfill orders before the implementation of a planned 27% tariff, causing a temporary increase in exports. Despite this, overall market conditions remain bleak, with a projected continued decline in exports due to ongoing tariff issues and weakened buyer confidence. The decline has also led to a 24.3% reduction in rough diamond imports. The outlook for recovery in the gems and jewellery sector remains pessimistic amid these global headwinds.