Gems and jewellery exports down 4.98% in December as sector adapts to new markets

India's gems and jewellery exports registered a 4.98 per cent decline in December 2025, totalling USD 1,883.85 million (Rs 16,978.44 crore), according to the Gem and Jewellery Export Promotion Council (GJEPC). This near-flat performance compared to $1,982.62 million in December 2024 reflects ongoing market stabilisation. During April-December 2025, total exports remained steady at $20,751.28 million, a marginal decrease of 0.41 per cent from the previous year.

The sector saw strong growth in gold, silver, and platinum jewellery, helping to counterbalance weaker results in cut and polished diamonds and lab-grown diamonds. GJEPC chairman Kirit Bhansali stated, "This trend reflects the industry's ability to adapt through product mix optimisation, value addition, and diversified export destinations."

Export diversification has become a focal point, with Free Trade Agreements (FTAs) driving significant gains in new and alternative markets. Exports to the United Arab Emirates rose by 28.08 per cent year-on-year to $6.89 billion, while shipments to Hong Kong grew 28.19 per cent to $4.25 billion. Exports to Australia also rose sharply by 39.83 per cent to USD 277.76 million. GJEPC noted, "FTAs with the UAE and Australia have come at a crucial time for the industry. Recent FTAs with the UK, Oman, New Zealand and others will further enhance competitiveness by reducing duties and easing trade barriers."

Within product categories, silver jewellery exports surged by 248.74 per cent in December 2025 to USD 179.46 million, compared to USD 51.46 million in the same month the previous year. Gold jewellery exports dipped by 16.31 per cent to USD 732.28 million, while exports of polished lab-grown diamonds declined by 2.56 per cent to USD 82.87 million. The overall gross export of cut and polished diamonds grew slightly by 2.7 per cent in December, reaching USD 794.93 million.

Trade uncertainties, particularly regarding tariffs, remain a concern for some export destinations. Bhansali remarked, "Prolonged uncertainty around tariffs could adversely impact the long-term viability of the US market for Indian jewellery exporters. That said, we have full faith in the government and remain hopeful that ongoing bilateral trade discussions will lead to a positive and timely resolution." He added, "With the Government currently negotiating multiple trade agreements, we are confident these will open new markets and strengthen India's position globally on quality, value and trust."

Budget expectations

In its pre-Budget submission to Finance Minister Nirmala Sitharaman, the Gem and Jewellery Export Promotion Council (GJEPC) has proposed a series of measures to make Indian exports more cost-efficient and strengthen the country’s position as a global hub for diamond trading and price discovery. The council flagged mounting challenges for the sector, including higher tariffs in key markets such as the United States, evolving consumer preferences and structural changes in global sourcing patterns.

GJEPC said its recommendations are aimed at improving ease of doing business for exporters by enhancing the effectiveness of special economic zones, simplifying regulatory processes and encouraging greater investment in skills and infrastructure. According to the council, a stable and supportive policy environment would help the industry navigate current global headwinds while positioning India for the next phase of growth in the international jewellery trade.

A key concern raised by exporters is the existing 4% Safe Harbour tax, which the council argues discourages international transactions and weakens India’s competitiveness. GJEPC has urged the government to review and rationalise import duties on cut and polished diamonds as well as coloured gemstones, and to amend the Customs Act, 1962, to better align procedures with the needs of a fast-paced, export-oriented industry.

To reduce compliance costs and improve port efficiency, the council has recommended risk-based customs clearances, artificial intelligence-enabled digital appraisals and self-certification for trusted exporters, measures it believes would enhance speed and predictability across the supply chain.

Separately, the All India Gem and Jewellery Domestic Council (GJC) has submitted proposals focused on domestic reforms, including a reduction in GST on gold and silver jewellery from 3% to 1.25%, capital gains tax relief on reinvestment in hallmarked jewellery and the early rollout of a Tourist GST Refund scheme at major airports to boost retail exports.

(With PTI inputs)