Gems and Jewellery Exports Plunge Amid Middle East Conflict

India's gems and jewellery exports dropped 35.23% to USD 27,717.40 million in March due to the West Asia conflict. This led to stalled logistics and skyrocketing insurance premiums. Despite challenges, policy support may transform India into a rough diamond trading hub amidst the shifting geopolitical landscape.

India's gems and jewellery exports experienced a significant drop of 35.23% in March, amounting to USD 27,717.40 million, following disruptions caused by the ongoing Middle East conflict, according to a report by the Gem and Jewellery Export Promotion Council (GJEPC). The conflict has severely impacted logistics, delaying shipments, including diamond exports, as explained by GJEPC Chairman Kirit Bhansali.

In addition to logistical difficulties, the increased insurance premiums amid the high-risk scenario have further contributed to the decline in exports. Nonetheless, Bhansali remains optimistic, suggesting that with government policy support, India could potentially leverage this situation to establish itself as a hub for rough diamond trading.

While the overall gems and jewellery exports for 2025-26 dipped marginally by 3.32%, challenges were somewhat offset as the GJEPC sought new markets beyond the U.S., where demand weakened due to tariffs. Increased demand in regions such as the Gulf Cooperation Council, the UK, and the European Union helped balance the impact. Bhansali anticipates a potential increase in exports once geopolitical tensions settle.

(With inputs from agencies.)