India’s diamond exports hit 20-year low amid weak US and China demand

INDIA’S exports of cut and polished diamonds plummeted to their lowest level in nearly two decades in the 2024-2025 fiscal year, which ended in March, on sluggish demand from the United States and China, a leading trade body said on Monday (14).

India is the largest cutting and polishing hub, handling nine out of every 10 diamonds processed globally. But it is sensitive to economic uncertainty – particularly in the US, its biggest market.

Cut and polished diamond exports, which usually account for nearly half of overall gem and jewellery shipments, fell 16.8 per cent to $13.3 billion (£10bn) yearon-year, the Gems and Jewellery Export Promotion Council (GJEPC) said in a statement.

The slump dragged down overall gem and jewellery exports by 11.7 per cent to $28.5bn (£21.5bn) – a four-year low – from $32.28bn (£24.3bn) the previous year.

The lower demand for polished diamonds also prompted Indian processors to reduce imports of rough diamonds by 24.3 per cent to $10.8bn (£8.1bn), the trade body said.

Gems and jewellery exports rose by one per cent year-on-year in March, however, to $2.56bn (£1.9bn), the GJEPC said, as exporters ramped up shipments ahead of announced US tariffs.

US president Donald Trump initially planned to place a 27 per cent tariff on imported Indian goods from April 9 as part of duties targeting dozens of countries, but then declared a 90-day pause on the measure. “US buyers were loading up in March before the tariffs kicked in. Indian exporters were also rushing to ship out US orders first, so they wouldn’t get hit with those extra costs,” said Shaunak Parikh, vice-chairman of GJEPC.

India’s gems and jewellery exports are unlikely to recover this year, one major Mumbai-based exporter told Reuters, as the US tariffs have roiled global markets and shaken buyer confidence.