India’s exports of cut and polished diamonds have reached their lowest level in nearly two decades, according to the Indian Gems and Jewellery Export Promotion Council. The decline stems from reduced demand in major markets, including the United States and China. For the fiscal year 2024/25, ending in March, exports of these diamonds dropped by 16.8% year-on-year, totaling $13.3 billion.

Indian processors cut rough diamond imports by 24.3% to $10.8bn (Rs925.95bn) amid lower demand for polished stones.

This downturn has impacted the broader gem and jewellery sector, with overall exports falling 11.7% to $28.5 billion, down from $32.28 billion the previous year, marking a four-year low. In response to weaker demand for polished diamonds, Indian processors reduced rough diamond imports by 24.3%, bringing the total to $10.8 billion for the fiscal year.

Despite the annual decline, March 2025 saw a slight improvement, with gem and jewellery exports rising 1% year-on-year to $2.56 billion. This uptick was driven by exporters hastening shipments to the US ahead of anticipated tariffs. Shaunak Parikh, vice-chairman of the GJEPC, noted: “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.”

Initially, a 27% tariff on Indian goods imported to the US was set to begin on April 9, 2025, but this was later suspended for 90 days. However, a prominent Mumbai-based exporter expressed concerns about the sector’s recovery, stating that the uncertainty surrounding US tariffs has disrupted global markets and weakened buyer confidence, posing challenges for India’s gem and jewellery exports in the near term.

In a separate development, India’s state-run miner NMDC announced plans to produce 6,500 carats of diamonds, valued at $3.4 million, from the Panna mine in Madhya Pradesh during the 2024/25 fiscal year. This initiative reflects efforts to bolster domestic diamond production amid challenging export conditions. The GJEPC emphasized: “Despite market challenges, India’s gem and jewellery sector remains committed to adapting to global demand and supporting economic growth.”

The data highlights the difficulties faced by India’s diamond industry, with exporters navigating fluctuating international demand and trade policies. Industry leaders are focusing on strategic adjustments to sustain the sector’s contribution to the economy while addressing market uncertainties.