India's Gem Trade Faces Challenges Amid US Tariffs

India's gem and jewellery exports fell 3.3% in the 2025/26 fiscal year, marking the lowest levels in five years due to a significant drop in shipments to the U.S. These disruptions were caused by tariffs and duties. Despite setbacks with the U.S., other markets showed promising growth potential.

India's gem and jewellery exports fell by 3.3% in the 2025/26 fiscal year, marking the lowest point in five years, a major trade body announced on Wednesday. This decline reflects the substantial reduction in shipments to the U.S., where exports nearly halved due to tariffs and duties.

The Gem and Jewellery Export Promotion Council (GJEPC) reported that exports to the U.S. fell 45% from the previous year, amounting to $5.09 billion. This fall was primarily due to months of disruption after Washington imposed reciprocal tariffs and implemented an additional 25% duty on Indian products.

India, recognized as the world's leading hub for diamond cutting and polishing, continues to thrive in other markets such as the United Arab Emirates, Hong Kong, Australia, and Canada. Kirit Bhansali, chairman of GJEPC, noted strong growth in these regions and anticipated that free trade agreements with the UK and EU would bolster the industry further this year.

(With inputs from agencies.)