India's Gem and Jewellery Exports to the US Witness Significant Decline, Overall Exports Remain Stable Due to Diversification and FTAs

In a recent development within the global trade landscape, India's gem and jewellery sector has observed a notable contraction in its export figures to the United States. During the period spanning April to December 2025, shipments to the American market saw a substantial decrease, dropping by nearly 45% compared to the previous year. This downturn underscores the significant impact of ongoing tariff-related challenges and a general softening of discretionary consumer demand in the US. However, despite this specific market contraction, the broader Indian gem and jewellery industry has demonstrated remarkable stability in its total export performance, largely owing to strategic market diversification efforts and the benefits derived from various Free Trade Agreements.

A more detailed analysis of the export data reveals that from April to December 2025, India's gem and jewellery exports to the United States amounted to US$3.86 billion, a considerable reduction from the US$6.95 billion recorded in the equivalent period of the prior year. This trend of diminishing exports to the US was particularly pronounced in December 2025, with a year-on-year decline exceeding 50%. Industry leaders have pointed to the persistent uncertainty surrounding trade tariffs as a primary factor contributing to this sharp fall, raising concerns about the long-term viability of the US market for Indian jewellery exporters.

Kirit Bhansali, the Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), articulated the gravity of the situation, noting that the United States traditionally represents India's largest export destination for these goods, accounting for close to 30% of total exports. He stressed that a prolonged period of tariff ambiguity could have lasting negative consequences. Nevertheless, Bhansali expressed confidence in the Indian government's ongoing bilateral trade discussions, hopeful that these negotiations would lead to a favorable and timely resolution that alleviates the current trade impediments.

Despite the significant challenges faced in the US market, the Indian gem and jewellery industry's overall export performance remained robust. Provisional figures for the nine-month period from April to December 2025 show aggregated exports reaching US$20.75 billion. This figure represents only a marginal year-on-year decrease of 0.41% in dollar terms, and notably, a 3.69% growth when measured in Indian rupees. This resilience is largely attributed to the industry's successful strategies in diversifying its export markets and leveraging existing Free Trade Agreements, which have collectively cushioned the impact of the slowdown in the US.

The current export trends highlight a critical juncture for India's gem and jewellery industry. While the US market presents a formidable challenge due to trade barriers and evolving consumer behavior, the industry's proactive approach to market diversification and its ability to capitalize on FTAs have proven instrumental in maintaining overall stability. The coming months will be crucial in observing the outcomes of diplomatic efforts to address trade concerns with the US, and how these resolutions, alongside continued diversification, will shape the future trajectory of India's esteemed gem and jewellery exports.