India’s Cut and Polished Diamond Exports Fall to Two-Decade Low
Mumbai: Due to the turmoil created by U.S. President Donald Trump’s uncertain tariff policies and the resulting weakening of demand from China, India’s exports of cut and polished diamonds have dropped to a two-decade low in the fiscal year 2024-25, which ended in March. India, traditionally a hub for diamond cutting and polishing, processes 9 out of every 10 diamonds worldwide.
The largest market for diamonds, the U.S., has seen a significant decrease in demand due to tariff uncertainties. As a result, exports of cut and polished diamonds have declined. The Gem and Jewellery Export Promotion Council (GJEPC) reported that the exports of cut and polished diamonds, which typically account for half of the gem and jewellery shipments, fell by 16.8% to $13.3 billion. This decrease led to an 11.7% drop in total gem and jewellery exports, which fell to $28.5 billion, the lowest level in four years, compared to $32.28 billion the previous year.
Due to weak demand for polished diamonds, Indian processors have also reduced their import of rough diamonds by 24.3%, bringing the value down to $10.8 billion. However, gem and jewellery exports showed a 1% increase in March, reaching $2.56 billion, as exporters rushed to ship orders before the tariff increases took effect.
It is noteworthy that U.S. President Donald Trump initially announced a 27% tariff on imports from India, effective April 9, but later decided to delay the tariff for 90 days. GJEPC Vice-Chairman Shaunak Parikh stated that U.S. buyers increased purchases in March ahead of the tariff deadline, causing Indian exporters to prioritize fulfilling U.S. orders to avoid the additional tariff burden. Due to the uncertainty surrounding U.S. tariffs, exporters believe that India’s gem and jewellery exports may not recover in the current fiscal year.
