India’s gems and jewellery exporters are finding new avenues to sustain their businesses amidst the 50% additional tariff in the US, by exporting high-margin diamond-studded jewellery to the US and catering to a burgeoning domestic market. They are also fast diversifying into new markets, besides consolidating presence in key non-US markets like the UAE, to stay afloat.
Trade data reveal that gems and jewellery exports to the US, conventionally a key destination, dropped by 40.3% to $2.77 billion from April to September 2025, while cut and polished diamond (CPD) exports to the country dropped 53.6% to $1.17 billion.
However, battling these headwinds, exporters report a growing demand for diamond-studded jewellery in the US. Alkesh Shah, Vice Chairman of Goldstar Jewellery, said to FE, “Overall, diamond exports to the US have fallen by 13-16% for us. But studded diamond jewellery demand has increased by about 10%, which is being capitalised.”
Shah, among other exporters, also sees a trend of companies exporting to the US through third-party routes to avoid the 50% tariff. “My company has a set-up in the US, while many companies have bases in other countries, including the UAE. However, smaller companies are the ones who suffer most in such situations.”
Neeraj Lunawat, Managing Partner at Lunawat Gems Corporation explained how newer geographies are key to offsetting the tariff blow. , “Many exporters are looking at markets in the UAE and Europe to curb losses. That said, US retailers are still looking to buy goods from India, albeit at lesser volumes.” He also noted that high-value coloured gemstones within the $50,000-100,000 price range are gaining popularity among buyers. “Similar to gold, people are buying gemstones as investments,” he said.
Markets such as the UAE and Hong Kong have also helped soften the blow on exporters, with data from the Gems & Jewellery Export Promotion Council (GJEPC) revealing a 65.23% rise in UAE shipments, to $1.29 billion in April- , and a steady export growth of 18% to Hong Kong, reaching $2 billion in the period.
Alongside international markets, exporters are also eyeing the domestic market, which is projected to grow to a $130 billion industry by 2030, according to a report by the India Brand Equity Foundation (IBEF).
Managing Director of Asian Star Jewellery, Vipul Shah, said that companies that have been doing business with the US for years are now being directed to India’s retailers. “Take my company for instance,” he said, “90% of our operations revolved around CPD. Today, about 60% of our operations focus on diamond-studded jewellery as it ultimately adds more value. Many companies are now supplying major jewellery retailers across India, which are also expanding their global presence.”
Shah noted that currently, many orders from the US come in the form of jewellery casting or finishing, which gives exporters a slightly higher margin compared to CPD production.