Gem and jewellery exports stabilize, improve after tariff cut

Surat: Gem and jewellery exports from India stabilized between April 2025 and Jan 2026, showing an improved scenario compared to the same months of the previous financial year. Despite tariff-related pressures, geopolitical uncertainties and pricing concerns, the stable exports reflected the resilience of the industry.In Jan 2026, however, there was a drop in exports of cut and polished diamonds by 3.64% from $1 billion in Jan 2025 to $979 million.
Overall gross gem and jewellery exports from April 2025 to Jan 2026 reached $23.19 billion, a marginal decline of 0.64% from exports of $23.33 billion the previous year. This underscored the sector's underlying stability despite volatile conditions."India's gem and jewellery exports remained broadly stable during April-Jan, despite global headwinds, with a marginal decline underscoring the sector's resilience. The announcement of the framework for the India-US trade deal brought much-needed relief, with the revised 18% tariff on jewellery and zero duty on diamonds and coloured gemstones placing India in a superior position over key competitors — across diamonds, coloured gemstones and studded gold jewellery," said Kirit Bhansali, chairman, Gem and Jewellery Export Promotion Council (GJEPC)."This advantage is expected to help Indian exporters regain lost ground in the US and rebuild trade, potentially adding up to $3 billion in the near term. Supported by market diversification and a strong pipeline of trade agreements, the industry is well positioned for recovery and sustained growth in FY 2026–27," he added.The export outcome was significantly influenced by a sharp contraction in shipments to the US, India's largest gem and jewellery export destination, where exports declined by over 45% due to elevated tariffs and pricing disadvantages. The recently announced India-US trade deal, which restored tariff access for gems and jewellery at 18%, was expected to be a major inflection point. Even as exports to the US faced temporary pressure, India successfully diversified its export markets, recording strong growth across several key destinations.Cut and polished diamond exports during April–January 2026 stood at $9.97 billion, registering a 7.46% year-on-year decline. Total gold jewellery exports, including plain and studded jewellery, grew 5.53% year-on-year to $9.71 billion during the period. Within this period, plain gold jewellery exports rose marginally by 1.57%, while studded gold jewellery exports recorded stronger growth of 8.69%, supported by higher value-added demand.Silver jewellery exports surged sharply by 51.21% to $1.28 billion, driven by robust international demand and higher silver prices. Platinum jewellery exports grew 49.09% to $215.15 million, aided by growing acceptance in niche and premium markets, along with price appreciation.Polished lab-grown diamond exports declined 9.73% year-on-year in value to $923.62 million, even as export volumes increased significantly, indicating price softness. Coloured gemstone exports stood at $342.34 million, marginally lower by 3.38% year-on-year, reflecting stable but subdued demand.