India’s gem and jewellery exports declined to their lowest level in five years during the 2025/26 fiscal year, largely due to a sharp drop in shipments to the United States, according to industry data highlighting the impact of tariffs and duties.
Exports for the year ending in March fell 3.3% to $27.72 billion, down from $28.7 billion the previous year, and marking the lowest level since 2020/21 when pandemic-related disruptions affected global trade, the Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.
Shipments to the U.S., India’s top buyer, dropped 45% year-on-year to $5.09 billion. The decline followed the imposition of reciprocal tariffs by Washington, along with an additional 25% duty on Indian goods, which disrupted exports for several months.
Cut and polished diamond exports—typically accounting for nearly half of total shipments—fell 8.5% to $12.16 billion, the lowest level in over two decades, according to GJEPC data.
India remains the world’s largest hub for diamond cutting and polishing, processing roughly 90% of global diamonds.
Despite the decline in U.S. exports, other markets including the United Arab Emirates, Hong Kong, Australia, and Canada recorded strong growth, said Kirit Bhansali, chairman of GJEPC.
“The anticipated implementation of free trade agreements with the UK and EU this year is expected to further support the growth of India’s gem and jewellery exports,” he said.
