NEW DELHI— India’s gems and jewelry sector posted a sharp export rebound in July, as traders rushed to fulfill orders ahead of anticipated U.S. tariff increases set to take effect in August.
According to data released Wednesday by the Gems and Jewellery Export Promotion Council (GJEPC), gross exports climbed 15.98% year-over-year to $2.18 billion (₹18,756.28 crore) in July, compared with $1.88 billion (₹15,700 crore) in the same month of 2024.
Gross imports surged even more, rising 26.55% to $1.8 billion (₹15,587.73 crore) from $1.43 billion (₹11,956.04 crore) a year earlier, as manufacturers and traders boosted inventory ahead of the festive and wedding seasons.
GJEPC attributed the spike to accelerated trade flows in July, with exporters front-loading shipments to avoid supply chain disruptions and tariff impacts later in the year. Seasonal drivers — including India’s festival period and the Western holiday season — were amplified by product diversification into lightweight, contemporary designs that appeal to younger consumers, as well as improved market access through trade agreements such as the India–UAE CEPA.
Cut and polished diamond exports, a key segment, rose 17.76% to $1.07 billion (₹9,230.66 crore), up from $910.13 million (₹7,608.79 crore) in July 2024. GJEPC cited proactive stocking by global buyers in anticipation of price volatility, alongside gains from more efficient manufacturing and deeper penetration into emerging markets.
Imports of cut and polished diamonds grew 32.02% to $113.75 million (₹980.65 crore), driven by inventory build-up ahead of peak demand. Meanwhile, rough diamond imports between April and July 2025 reached $4.37 billion (₹37,475.56 crore), a 1.48% increase from the prior year, as traders secured raw materials to serve both domestic and overseas markets such as the UAE and the UK.
“The gems and jewelry exports are witnessing a dynamic shift — earlier influenced by geopolitical tensions and now by tariff complexities,” said Colin Shah, Managing Director of Kama Jewellery. “July’s strong performance is a cautionary uptick ahead of a potential slowdown in cross-border business. While trade agreements have opened new opportunities, challenges such as high gold prices, economic uncertainty, and volatile metal markets persist.”
Shah emphasized the importance of monitoring India–U.S. trade negotiations. “With the current 50% trade tariffs, sustaining this growth will be difficult. However, domestic gold demand is poised to strengthen with the onset of India’s festival and wedding season, providing some relief to the industry.” (Source: IANS)
