India’s gem and jewellery sector is set to register a slowdown in May 2025. Both exports and imports have shown a combined decline.
According to the Gem & Jewellery Export Promotion Council (GJEPC), this is due to global economic uncertainty and geopolitical issues. Cut and polished diamonds and lab-grown diamonds are also witnessing a decline in demand. Gold jewellery exports are bucking the trend with positive growth. In this situation, industry experts are hoping for an improvement in sentiment following the US-China trade talks.
The total gross exports of gems and jewellery in May stood at $2.263 billion, down 15.81% from $2.69 billion in May last year.
Total gem and jewelry imports also declined in May, amounting to $1.689 billion, down 12.96% from $1.941 billion in the same period last year. Experts attribute this to economic uncertainty related to tariffs imposed by US President Donald Trump, as well as ongoing geopolitical tensions, which are pushing demand down.
Total gross exports of cut and polished diamonds decreased by 35.49% in May 2025 to $949.70 million, compared to $1.472 billion in the same period last year. This is due to slowing demand for this product category in major consumer markets such as the US and China. Another reason affecting the demand for natural diamonds is lab-grown diamonds, which demonstrate sustainability and cost effectiveness.
Total gross imports of cut and polished diamonds decreased by 38.76% in May 2025 to $84.80 million from $138.47 million in the same period last year.
Gross imports of rough diamonds stood at $2.262 billion in the previous month, showing a decrease of 5.46% compared to $2.392 billion in the same period last year. Experts attribute this to weaker demand from key markets such as the US and China. Moreover, falling prices coupled with oversupply has become another factor leading to the decline in imports as traders look to offload existing stocks.
Preliminary gross exports of polished lab-grown diamonds stood at $80.90 million in May 2025, down 32.76% from $120.32 million in the previous year. This is due to the weak demand from overseas markets, primarily the US and China, which led to an overall weakening in demand as both these countries are key export destinations for India.
The total gross gold jewellery exports in May 2025 were $997.50 million, up 17.24% from $850.81 million in the same period last year. This can be attributed to the fact that gold is emerging as not just an investment asset but also an ornament for daily enjoyment, which is increasingly being preferred by buyers across the globe.
The preliminary gross coloured gemstone exports in May 2025 were $62.51 million, indicating a marginal decline of 1.13% as compared to $63.22 million in the same period last year. Since this is a niche product category, consumption tends to fluctuate with demand. However, this product category remains resilient to any macroeconomic factors and can rebound stronger.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
