Tariffs Take Toll on India’s Gem and Jewelry Industry in April

Mumbai, India—India witnessed a drop in gem and jewelry exports in April, a decline one industry leader attributed to tariffs and the now-temporarily cooled trade war between the United States and China.

“The exports witnessing a decline in April 2025 can be viewed as a direct impact of the tariffs levied by President Trump, which have shaken the global market, thereby creating a ripple effect in the domestic market as well,” said Colin Shah, managing director of Indian jewelry manufacturer Kama Jewelry and a former chairman of India’s Gem and Jewelry Export Promotion Council (GJEPC). 

“Secondly, the prolonged geopolitical tensions in the Middle East and Russia-Ukraine and the U.S.-China trade war continue to spread a wave of uncertainty across the globe, thereby impacting the supply-demand dynamics.” 

On Tuesday, the GJEPC, which is India’s main jewelry trade organization, reported that overall gross exports of gems and jewelry totaled $2.04 billion in April, down 5 percent from $2.14 billion in April 2024. 

Imports of gems and jewelry declined more significantly, dropping 18 percent year-over-year to $1.57 billion.

GJEPC reported that gross exports of cut and polished diamonds were down 6 percent year-over-year to $1.12 billion. 

Imports declined more significantly, dropping 46 percent year-over-year to $47.6 million, as global demand for diamonds continues to be soft.

While trade in polished diamonds declined in April, India did see some stabilization in the rough diamond market.

Gross imports of rough diamonds were essentially flat year-over-year, totaling $1.2 billion.

Shah attributed this in part to domestic demand, noting an increase in demand for polki (uncut) diamonds during the Indian wedding season.

Exports of polished lab-grown diamonds also were flat year-over-year, totaling $110.7 million compared with $110.3 million in April 2024.

Shah said the stones are “gradually but steadily picking up pace in the international market,” particularly among younger consumers.

Gold jewelry exports, meanwhile, declined 5 percent to $684.5 million, with Shah noting the metal’s high price (close to $3,200 per ounce at press time) makes it “an uphill climb” for some buyers.

Colored gemstones were the one bright spot for the Indian trade in April.

GJEPC data shows that gross exports of colored gemstones grew 12 percent year-over-year in April to $27.8 million, with Shah described colored gemstones as a “niche” product is largely unaffected by the factors impacting other sectors of the jewelry market.

Looking ahead, he said he expects trading to gain momentum after the U.S. and China reached a deal over the weekend that significantly lowers tariffs for 90 days.