Gems And Jewellery Exports Surged 16% In July Ahead Of Tariff Announcement

India's gems and jewellery sector recorded a sharp rise in exports in July, as traders moved swiftly to conclude deals ahead of expected US President Donald Trump's tariff hikes from August.

According to data from the Gems and Jewellery Export Promotion Council, overall gross exports in July rose 15.98% year-on-year to $2,178.24 million, compared with $1,878.09 million a year earlier. Imports for the month also saw a strong 26.55% growth to $1,810.43 million.

Colin Shah, Managing Director of Kama Jewelry, noted that the July growth reflected a “cautionary uptick” ahead of a potential slowdown once tariffs take effect.

He also stressed the importance of India-US trade talks, warning that the current 50% tariffs could challenge momentum.

"As India heads into the festive season, and following this is the holiday season in the West, a major part of the trade has already been concluded in July 2025," said Gems and Jewellery Export Promotion Council.

Product diversification into lightweight, contemporary designs and better market access through trade pacts such as the India-UAE CEPA also boosted competitiveness.

Shah noted that domestic demand, spurred by India's festival and wedding seasons, should provide some relief to the industry in the coming months.

Category-Wise Performance

The data by the Gems and Jewellery Export Promotion Council showed that the cut and polished diamonds category led the charge, with exports increasing 17.76% to $1,071.73 million, aided by global buyers stocking up ahead of potential price swings. Imports of cut and polished diamonds climbed 32.02% to $113.75 million as manufacturers prepared inventories for peak demand.

The rough diamond imports between April and July 2025 saw a 1.48% to $4,373.88 million, with traders securing supply in anticipation of rupee depreciation and tariff-related uncertainties.

Platinum jewellery exports in the same period rose 14.11% to $65.18 million, supported by the metal's appeal as an affordable luxury alternative to gold and its increasing use in men's jewellery.

Total gross export of gold jewellery rose 16.39% to $813.77 million in July. This is in comparison to $699.17 million during the same month in the previous year.

Silver jewellery exports dipped 2.44% to $281.2 million as demand in key markets such as the US and Europe remained subdued, while coloured gemstone exports edged up 1.93% to $116.66 million, supported by robust demand in the bespoke luxury segment.

Gross export of Coloured Gemstones for the period rose 1.93% to $116.66 million over the comparable figure of $114.45 million for the previous year.