India’s gems and jewellery exports declined 35.23% YoY to $1.78 billion or Rs 16,597 crore in March this year, mainly impacted by the West Asia conflict, apex industry body Gem & Jewellery Export Promotion Council said.
In March last year, India’s total gems and jewelry exports were $2.753.72 billion, or Rs. 23,821 crores, industry data showed. The overall gross imports of gems & jewellery in March stood at $2.3 billion. Growing by 16% YoY.
Key market hit
“The Middle East conflict impacted gems and jewellery exports in March as logistics were affected. Even the diamond export parcels couldn’t get through. Due to a high-risk situation, the insurance premiums skyrocketed, further impacting the shipments,” GJEPC chairman Kirit Bhansali told PTI.
However, Bhansali said that with policy support, this conflict could become an opportunity for India, turning the country into a rough-diamond trading hub.
“Companies in the UAE are showing keen interest in setting up rough diamond trading in India. I think, with the government support, we can turn India into a trading hub as we are already a hub in polishing,” said Bhansali.
Since 2020, the United Arab Emirates has become a rough diamond trading hub due to its accessibility to India.
FY26 jewellery sector performance
Further, India’s overall FY26 exports of gems and jewellery dipped marginally by 3.32% to $27.7 billion compared to $28.6 billion in FY25.
Bhansali said the impact of the US tariffs was offset by GJEPC’s exploration of other markets.
“Despite weaker demand in the US following tariff imposition, and in China due to economic pressures, stronger demand from markets, such as the Gulf Cooperation Council (GCC), the UK and the European Union (EU) helped offset the impact,” he added.
Bhansali said that over the next 2-3 months, the council expects geopolitical tensions to ease. “Once the geopolitical tensions settle down, the gems and jewellery exports will increase. However, we will continue to explore new export markets,” he added.
Meanwhile, according to data, the overall export of cut and polished diamonds (CPD) declined 27.48% in March to $838.75 million, compared with $1,156.60 million for the same period the previous year.