India's Gem and Jewellery Exports Decline by 35% in March Amid West Asia Conflict

India's Gems and Jewellery Exports Decline 35.23% in March Due to West Asia Conflict

India's gems and jewellery exports declined significantly in March this year, primarily due to the ongoing conflict in West Asia. According to the Gem and Jewellery Export Promotion Council (GJEPC), the country's total gems and jewellery exports stood at $27,717.40 million (Rs 2,44,827.26 crore) in March 2025, a 35.23 per cent decline from the previous year's figure of $28,669.53 million (Rs 2,42,559.39 crore).

The decline in exports was attributed to the logistics disruption caused by the conflict. The GJEPC chairman, Kirit Bhansali, stated that the high-risk situation led to a surge in insurance premiums, further impacting the shipments. However, Bhansali emphasized that the conflict could present an opportunity for India to become a rough diamond trading hub with government support.

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The overall exports of gems and jewellery in 2025-26 dipped marginally by 3.32 per cent to $27,717.40 million (Rs 2,44,827.26 crore) compared to $28,669.53 million (Rs 2,42,559.39 crore) in the previous fiscal year. Bhansali noted that the impact of the US imposing tariffs was offset as the GJEPC explored other markets, such as the Gulf Cooperation Council (GCC), the UK, and the European Union (EU).

The export of cut and polished diamonds (CPD) showed a decline of 27.48 per cent in March to $838.75 million (Rs 7,798.82 crores) compared to $1,156.60 million (Rs 10,002.52 crores) for the same period of the previous year. The overall exports of CPD dipped by 8.52 per cent to $12,159.83 million (Rs 1,07,461.34 crore) in FY26 compared to $13,292.43 million (Rs 1,12,414.32 crore) in 2024-25.

The export of total gold jewellery in 2025-26 was flat at $11,364.32 million (Rs 1,00,277.64 crore) over $11,367.42 million (Rs 96,254.5 crores) in the previous year. However, silver jewellery exports in FY26 grew by 52.21 per cent to $1,467.47 million (Rs 13,013.54 crores) against $964.10 million (Rs 8,135.78 crores) in the previous year.

According to the GJEPC, the geopolitical tensions are expected to settle down in the next 2-3 months, which should lead to an increase in gems and jewellery exports. In the meantime, the council will continue to explore new export markets to mitigate the impact of the conflict.

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