EXPORTS OF cut and polished diamonds (CPD) to the United States, a major market for the gemstone, fell by over more than half this year compared to the corresponding first half of the previous financial year (April-September 2024) while exports to the United Arab Emirates (UAE), Hong Kong and the United Kingdom surged, as per data released by the Gems and Jewellery Export Promotion Council (GJEPC) on Tuesday.
The highest surge was seen in the UAE market that grew by 65.23 per cent (nearly $1,300 million) followed by an 18 per cent rise in the Hong Kong market at $2057 million and the UK, which saw a 17 per cent rise valued at $155.50 million, as compared to the 53.62 per cent fall in the US market ($1,175 million), a statement issued by the Council said.
The US is the largest export market for CPD, accounting for nearly a third of India’s annual gems and jewellery exports valued at nearly $10 billion of its total exports in this sector, which was badly hit after the new tariffs imposed in the sector by President Donald Trump which kicked in from August.
A statement from the Council said that overall the gems and jewellery export witnessed a growth of 3.66 per cent valued at $14.09 billion in the April- September 2025, compared to exports worth $13.60 billion in the same period last year.
However, the US, which is seen as a crucial destination for Indian gem and jewellery exports, continued to face challenges due to “tariff-related factors”, the council said, adding that from April to September 2025, overall exports of gems and jewellery to the USA declined 40.28 per cent to $2,770.66 million.
GJEPC chairman Kirit Bhansali was quoted as saying that the Council was in “close coordination with the Indian Government” to help the industry. He said that as exporters and manufacturers catering to the US market faced a significant drop due to the prevailing tariff situation, the GJEPC had recommended the government to defer interest on working capital loans, provide relief in pre-shipment finance, extend Interest Equalisation Scheme, permit reverse job work in SEZs (Special Economic Zones), allowing sales from SEZs to the Domestic Tariff Area (DTA), and provide liquidity support packages for affected MSMEs.
To help diamond polishers, the GJEPC had made a demand for concessional loans and education grant of Rs 1,000 per child and temporary inclusion under Ayushman Bharat for healthcare cover.
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However, according to the GJEPC, in September 2025 alone, overall exports of gems and jewellery rose 6.55 per cent to S$ 2.91 billion, “signalling improved market sentiment following months of volatility.”
Bhansali called the half-yearly trends “encouraging signs of recovery for the industry.” The statement quoted him saying, “The forthcoming festive and wedding season among the Indian diaspora, together with the holiday season demand in global markets, is expected to further sustain this positive momentum in the coming quarter.”
Similarly, the exports of polished Lab Grown Diamonds (LGD) in the first half of the financial year declined by 7.99% to USD 586.63 million.
Surat Diamond Association President Jagdish Khunt said, “We did not solely rely on the USA, we have explored business potential in other countries and we achieved success. We will continue exploring new markets. The US customers have not totally stopped purchasing diamonds and jewellery, but they have reduced due to the ongoing tariff.”
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Khunt added, “The diamond (CPD and LGD) consumption in the domestic market in India has grown from five per cent to over 15 per cent (majority is of LGD). During the critical recession in the natural diamond industry, diamond polishers transitioned to the LGD industry, as the work in both industries is the same. The LGD has played a vital role in the survival of both industries.”
