India's gems and jewellery sector faced a challenging year in FY 2024-25, with overall exports dropping by 11.72% to USD 28.5 billion (approximately Rs. 2.41 lakh crore), according to the Gem & Jewellery Export Promotion Council (GJEPC). The decline is attributed to ongoing geopolitical tensions, primarily affecting demand from key markets like China and the United States. Despite these challenges, March 2025 saw a slight improvement, with exports growing by 1.02%. The decline in demand and rough diamond prices significantly impacted key export categories, including cut and polished diamonds and silver jewellery.
Geopolitical Pressures and Market Trends Impacting India’s Gems and Jewellery Exports
India’s gems and jewellery export sector experienced a notable downturn in FY 2024-25, with overall exports falling by 11.72% to USD 28.5 billion (Rs. 2.41 lakh crore), compared to USD 32.2 billion (Rs. 2.67 lakh crore) in FY 2023-24. According to Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), the drop in exports was primarily due to continued geopolitical tensions in key global markets, such as China and the United States. These tensions have dampened demand for India’s gemstone and jewellery exports, with a notable impact on both the volume and value of goods sold.
The challenges faced by the sector were compounded by a correction in rough diamond prices, which fell by 10-15%. This price adjustment negatively impacted the overall value of exports, further exacerbating the downturn in the market.
Key Export Segments Struggle Amid Declining Demand
The most significant decline in export values came from the cut and polished diamonds (CPD) segment, which saw a sharp 16.75% drop to USD 13.3 billion (Rs. 1.12 lakh crore), compared to USD 15.97 billion (Rs. 1.32 lakh crore) in the previous year. This decline is largely attributed to the reduction in demand for diamonds in the global market, especially in key markets such as China and the U.S., both of which have been significantly impacted by geopolitical issues.
Another area facing a decline was the export of polished lab-grown diamonds, which dropped by 9.64% to USD 1.27 billion (Rs. 10,716.13 crore), down from USD 1.4 billion (Rs. 11,612.36 crore) in FY 2023-24. While lab-grown diamonds have been gaining traction globally, the overall slowdown in the jewellery market has affected their export growth as well.
Exports of gold jewellery showed a relatively small decline of 0.11%, totaling USD 11.22 billion (Rs. 94,937.78 crore). This decline reflects a sluggish recovery in the global jewellery market, despite consistent demand for gold in certain regions.
Silver and Coloured Gemstones: Struggling to Regain Momentum
One of the most significant downturns came from the silver jewellery segment, where exports plummeted by 40.58% to USD 961.79 million (Rs. 8,115.32 crore), compared to USD 1.62 billion (Rs. 13,424.4 crore) in the previous year. This sharp decrease is indicative of a broader slowdown in consumer demand, particularly in Western markets, which traditionally make up a significant portion of India's silver jewellery exports.
Similarly, coloured gemstone exports also faced challenges, with a 8.01% decline, totaling USD 440.38 million (Rs. 3,729.93 crore), down from USD 478.71 million (Rs. 3,961.98 crore) in the previous year. These declines are consistent with the overall struggle of the jewellery market to recover from the effects of the pandemic and ongoing global economic instability.
Bright Spot: Platinum Jewellery Sees Growth
Despite the overall decline in the gems and jewellery export sector, there was a notable exception. Platinum jewellery exports saw growth of 11.79%, totaling USD 182.75 million (Rs. 1,547.3 crore), compared to USD 163.48 million (Rs. 1,354.41 crore) in the previous year. This increase indicates that consumers are increasingly turning to platinum as a more sustainable and luxurious option compared to traditional metals like gold and silver.
The growth in platinum jewellery exports may also be reflective of changing consumer preferences and a shift towards more premium, long-lasting products in markets like Europe and North America, where platinum has long been a popular choice for high-end jewellery.
Sector Outlook: Challenges and Opportunities Ahead
The outlook for India’s gems and jewellery sector remains mixed. On one hand, the geopolitical challenges and price fluctuations in the diamond market are expected to continue exerting pressure on export numbers in the short term. However, the industry’s resilience is demonstrated by its ability to recover, even modestly, as seen in March 2025, when exports grew by 1.02%, reaching USD 2.58 billion (Rs. 22,340.89 crore).
As the sector navigates these challenges, the GJEPC and key industry players are focusing on diversification, with a stronger push towards platinum and lab-grown diamonds, which are gaining ground in global markets. Additionally, the ongoing efforts to enhance manufacturing capabilities and boost the sector’s global competitiveness could yield positive results in the medium to long term.
For investors and market observers, it is crucial to monitor geopolitical developments and global demand trends. As global supply chains continue to adjust, especially in the wake of economic shifts and trade tensions, India’s gems and jewellery sector may see further fluctuations. However, India’s position as a leading exporter in this space ensures that it will remain a key player in the global market.
Conclusion: Navigating Global Headwinds with Strategic Adjustments
India’s gems and jewellery exports faced a difficult year in FY 2024-25, marked by an 11.72% decline. While challenges such as geopolitical tensions, reduced demand from key markets, and rough diamond price corrections have weighed heavily on the sector, the slight recovery in March and the growth in platinum jewellery exports suggest that there are opportunities for recovery. The sector’s ability to adapt to changing consumer demands and market dynamics will be pivotal in determining its trajectory moving forward. For stakeholders in the industry, staying ahead of market trends and geopolitical developments will be essential to navigate the current downturn and position for future growth.
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