India’s Diamond Export Industry Faces 20-Year Low in 2025

Global slowdown and weak demand from top markets like the U.S. and China hit India’s diamond trade hard in FY 2024-25.

India’s diamond export sector recorded its sharpest decline in nearly two decades during the financial year 2024-25, as global demand weakened significantly. According to the Gems and Jewellery Export Promotion Council (GJEPC), exports of cut and polished diamonds fell 16.8% year-over-year, totaling $13.3 billion, the lowest figure in almost 20 years.

India, which processes approximately 90% of the world’s diamonds, remains highly sensitive to international economic shifts—especially from the United States, its primary export destination. The downturn reflects not just reduced consumer demand but broader market hesitation in the face of economic uncertainty.

The overall gem and jewellery exports also suffered, falling 11.7% to $28.5 billion, compared to $32.28 billion in the previous year—marking a four-year low for the sector. This downturn also led to a significant drop in imports of rough diamonds, which declined by 24.3% to $10.8 billion.

Despite the bleak annual picture, March 2025 offered a short-lived boost. Exports in that month edged up 1% year-on-year to $2.56 billion, largely due to Indian exporters rushing to fulfill U.S. orders ahead of a proposed 27% tariff on Indian goods, initially scheduled for April 9. Although the U.S. later announced a 90-day postponement, the urgency prompted a temporary spike in shipments.

“U.S. buyers accelerated purchases in March, anticipating added costs from the tariffs,” said Shaunak Parikh, Vice-Chairman of GJEPC. “Indian exporters prioritized U.S. orders to avoid the looming price hikes.”

However, the future outlook remains cautious. Industry experts warn that a strong recovery in 2025 is unlikely. A key exporter based in Mumbai told Reuters that continued geopolitical tensions and uncertain global demand are likely to keep the market subdued.

With international trade still grappling with protectionist policies and global instability, India’s diamond industry must navigate an increasingly challenging landscape to reclaim its former momentum.