Gem and jewellery exports slip 0.64% to $23.19bn.
US shipments plunge 45% amid elevated tariffs.
India–US trade deal cuts tariffs to 18%, boosting outlook.
UAE, Hong Kong, Australia post strong double-digit export growth.
India’s gem and jewellery exports marginally declined between April 2025 and January 2026 due to elevated tariffs and pricing disadvantages from the US. The Gem and Jewellery Export Promotion Council (GJEPC) today said that the exports, however, broadly remained stable during the period due to diversification initiatives.
Overall gross exports stood at $23.19bn (₹2,03,280.72 crore), registering a marginal decline of 0.64% in dollar terms while growing by 3.57% in rupee terms, compared to exports of $23.33bn (₹1,96,277.49 crore) recorded during the same period the previous year.
3 February 2026
Get the latest issue of Outlook Business
"The export outcome was significantly influenced by a sharp contraction in shipments to the United States, India’s largest gem and jewellery export destination, where exports declined by over 45% due to elevated tariffs and pricing disadvantages," GJEPC noted in a statement.
However, the council stated that the recently announced India–US trade deal, which restores tariff access for gems and jewellery at 18% from 50%, is projected to lift India’s gem and jewellery exports by up to $3bn in the near term, driven by renewed price competitiveness and trade re-creation.
"Despite global headwinds, with a marginal decline in dollar terms and positive growth in rupee terms, underscoring the sector’s resilience," said Kirit Bhansali, Chairman at GJEPC.
"Zero duty on diamonds and coloured gemstones, will place India in a structurally superior position over key competitors—across diamonds, coloured gemstones and studded gold jewellery. This advantage is expected to help Indian exporters regain lost ground in the US market and re-create trade, potentially adding up to US$ 3 billion in the near term. Supported by market diversification and a strong pipeline of trade agreements, the industry is well positioned for recovery and sustained growth in FY 2026–27," he added.
G&J Market Diversification
India’s gems and jewellery exports are highly concentrated in three markets. The US represents over one-third of India’s G&J exports.
During April 2025 – January 2026, exports to the United Arab Emirates grew 23.71%, Hong Kong rose 33.5%, while Australia and France posted robust growth of over 36% each. Other markets such as Belgium, Thailand and Israel also recorded double-digit growth, demonstrating India’s growing global footprint and the industry’s ability to adapt to shifting trade dynamics.
Exim Bank found that this sector have an unrealised export potential of $38bn and it can touch export revenues of $75bn by 2030 by diversifying into high value-added product segments. It has highlighted the G&J sector also needs to increasingly tap markets like Singapore, European Union, Vietnam, Singapore, Thailand, Botswana, Russia, and Sri Lanka.
