Gems, jewellery shipments up 5% in August as exporters rushed to beat Trump tariff
While the exporters attempt to minimize the impact of tariff threat remained key reason, other positive elements including Free Trade Agreements such as India-UAE CEPA and reduced duties on imports for raw materials also played a pivotal role
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FRANCIS MASCARENHAS
Gems and jewellery exports increased five per cent last month to $2.12 billion against ₹2.01 billion logged in August, 2024 as exporters rushed to fulfil their orders before the punitive Trump tariff kicked-in.
In rupee terms, it was up 10 per cent to ₹18,529 crore against ₹16,896 crore in the same period, as per the Gems and Jewellery Export Promotion Council data.
While the exporters attempt to minimize the impact of tariff threat remained key reason, other positive elements including Free Trade Agreements such as India-UAE CEPA and reduced duties on imports for raw materials also played a pivotal role.
The overall gross import of gems and jewellery was up marginally last month at $1.47 billion ($1.46 billion). The rise reflects a steady domestic demand for raw and semi-finished products to support production for the upcoming holiday season internationally and domestic festive demand.
Cut and polished diamond export was down six per cent at $972 million ($1.03 million) due to sluggish spending on luxury items in the US and Europe.
The slump in retail sales across major markets led to high-cost inventory. The continued increase in the global demand for lab-grown diamonds on the backdrop of being environment-friendly and cost-effective also impacted natural diamond sales.
Imports of cut and polished diamonds fell four per cent to $113 million ($117 million) due to slump in domestic traders and manufacturers buying due to global price corrections and slower retail offtake. High inventory limited purchase of new stock. Having said that, domestic consumption may pick up during the festive season.
Rough diamond imports increased 3 per cent to $5.14 billion ($ 4.98 billion) as India remained the world’s cutting and polishing centre and received more rough diamonds.
Supply crunch
While demand for natural polished diamonds remained weak, some rough categories attracted buying as players expect supply crunch ahead of festival season.
Gold jewellery shipments jumped 63 per cent to $419 million ($257 million) supported by strong demand in key markets including West Asia and US. The festive season and wedding purchases was particularly strengthened by the India-UAE CEPA. A worldwide consumer interest to buy lightweight and everyday wear led to orders stimulated wedding buying. Silver jewellery exports increased 12 per cent to $419 million ($373 million) on strong global demand.
Published on September 16, 2025
