New Delhi, Apr 15 (KNN) India’s exports of cut and polished diamonds have fallen to their lowest level in nearly two decades during the 2024/25 fiscal year, according to data released Monday by a leading trade organisation. The significant decline reflects weakening demand from key markets, particularly the United States and China.
The Gems and Jewellery Export Promotion Council (GJEPC) reported that cut and polished diamond exports, which typically represent nearly half of India’s overall gem and jewellery shipments, decreased by 16.8 per cent year-on-year to USD 13.3 billion for the fiscal year ending in March.
This downturn contributed to an overall 11.7 per cent reduction in gem and jewellery exports, which totalled USD 28.5 billion—a four-year low—compared to USD 32.28 billion in the previous year.
India holds a dominant position in the global diamond industry, processing approximately 90 per cent of the world’s diamonds. However, the sector remains highly vulnerable to economic uncertainty, especially in the United States, which is India’s largest market for polished diamonds.
The reduced demand has also impacted India’s rough diamond imports, which fell by 24.3 per cent to USD 10.8 billion as processors adjusted their purchasing to match lower output requirements, the GJEPC noted.
Despite the overall annual decline, March saw a modest 1 per cent year-on-year increase in gems and jewellery exports to USD 2.56 billion. This uptick came as exporters accelerated shipments ahead of anticipated U.S. tariffs.
“U.S. buyers were loading up in March before the tariffs kicked in. Indian exporters were also rushing to ship out U.S. orders first, so they wouldn’t get hit with those extra costs,” explained Shaunak Parikh, Vice-Chairman, GJEPC.
U.S. President Donald Trump had initially planned to implement a 27 per cent tariff on imported Indian goods starting April 9, as part of broader duties targeting multiple countries.
However, the administration subsequently announced a 90-day pause on the measure, providing temporary relief to Indian exporters.
(KNN Bureau)
