May 15, 2025
Exports of cut and polished diamonds fell 6.12% due to weak demand in key markets like the US and China, and a growing shift toward gold and lab-grown alternatives
Imports of cut and polished diamonds declined steeply by 45.95% year-on-year, signalling reduced demand and inventory realignment
Rough diamond imports edged up by 0.56%, indicating stable demand from domestic cutting and polishing units
Polished lab-grown diamond exports rose marginally by 0.41%, supported by growing interest among younger, sustainability-conscious consumers
India’s gem and jewellery sector witnessed a slowdown in April 2025, with both imports and exports declining amid continued global economic uncertainty. According to official data, total imports fell 17.61% year-on-year to US$1,569.13 million (INR 13,419.63 crore).
Segment-wise, cut and polished diamond exports dropped 6.12% to US$1,108.74 million (INR 9,486.88 crore). This decline has been attributed to sluggish demand from major markets such as the United States and China, combined with a rising preference for gold and the increasing popularity of lab-grown diamonds among global buyers.
On the import front, cut and polished diamonds saw a significant contraction of 45.95%, falling to US$47.64 million (INR 407.51 crore) from US$88.13 million (INR 735.1 crore) recorded in April 2024. However, imports of rough diamonds experienced marginal growth of 0.56%, reaching US$1,200.06 million (INR 10,265.19 crore). This modest increase suggests that the domestic cutting and polishing industry continues to maintain baseline demand for raw materials.
In contrast, lab-grown diamonds posted a modest rise in exports. Polished lab-grown diamond shipments increased by 0.41% to US$110.74 million (INR 946.85 crore), driven by rising interest from younger consumers prioritising sustainability and affordability.
Gold jewellery exports declined by 5.41% to US$684.51 million (INR 5,856.15 crore) in April 2025. While gold continues to enjoy global appeal, high prices have deterred discretionary purchases in several markets.
Offering a positive note, coloured gemstone exports rose by 11.95%, climbing to US$27.76 million (INR 237.18 crore) from US$24.8 million (INR 206.91 crore) in April 2024. This segment’s performance highlighted its resilience and appeal in the face of broader market headwinds.
Commenting on the market dynamics, market experts noted that the export slowdown was a result of lingering Trump-era tariffs and ongoing geopolitical tensions, including the US-China trade war and the Russia-Ukraine conflict. However, they expressed cautious optimism, observing that recent diplomatic engagements between the US and China might ease tariff pressures and bring greater market stability in the months ahead.
Source: CNBC