Key points
- India’s gems and jewellery exports recorded a sharp 35 percent year-on-year decline in March 2026, reflecting deep stress across the sector as geopolitical tensions in West Asia and prolonged weakness in global demand converged to disrupt trade.
- The combination of geopolitical instability, weak global demand, and structural shifts in the diamond market has created a challenging operating environment that is unlikely to ease immediately.
- The contraction was broad-based across all major categories, but the sharpest declines were seen in diamonds, which continue to bear the brunt of global demand slowdown and inventory corrections.
Gems and Jewely News: India’s gems and jewellery exports recorded a sharp 35 percent year-on-year decline in March 2026, reflecting deep stress across the sector as geopolitical tensions in West Asia and prolonged weakness in global demand converged to disrupt trade. According to data from the Gem and Jewellery Export Promotion Council (GJEPC), total exports dropped to approximately $2.53 billion in March 2026, compared to $3.90 billion in March 2025.
Image Credit: Bangkok Gems News
The contraction was broad-based across all major categories, but the sharpest declines were seen in diamonds, which continue to bear the brunt of global demand slowdown and inventory corrections. Exporters say that order pipelines have thinned significantly, while delayed payments and cautious buying patterns are adding pressure across the value chain. This Gems and Jewelry News report reflects the growing vulnerability of India’s jewellery exports to both geopolitical shocks and structural demand shifts in key markets.
Cut and Polished Diamonds See 40% Crash
Cut and polished diamonds, which form the backbone of India’s exports, witnessed a steep fall of around 40 percent year-on-year in March. Exports in this segment declined to about $1.31 billion, down from roughly $2.19 billion in the same month last year.
This drop highlights ongoing stress in the global diamond pipeline. Demand from the United States – the largest consumer market – remains subdued, while Chinese demand has yet to recover meaningfully. At the same time, midstream inventories remain elevated, forcing buyers to limit fresh procurement.
Gold Jewellery Exports Drop 25%
Gold jewellery exports also posted a notable decline of approximately 25 percent year-on-year. The fall is closely tied to reduced demand from West Asia, where ongoing conflict has dampened retail activity and disrupted traditional buying cycles.
Exporters noted that the region, which typically absorbs significant volumes of Indian gold jewellery, has seen a marked slowdown in orders, with many buyers postponing purchases amid uncertainty.
Studded Jewellery and Other Segments Weaken
Studded gold jewellery exports also declined significantly, reflecting both lower consumer demand and logistical disruptions. In addition, other segments including silver jewellery and coloured gemstones experienced weaker shipments, indicating that the downturn is not isolated but systemic across the industry.
The overall export contraction underscores a synchronized slowdown across categories, rather than a single-segment issue.
West Asia Conflict Disrupts Trade Flows
The escalating conflict in West Asia has emerged as a major external shock for the sector. Apart from weakening demand, the crisis has disrupted shipping routes, increased freight and insurance costs, and created operational uncertainties.
Exporters report that several consignments have been delayed, while others have faced cancellations. Payment cycles have also lengthened, placing additional strain on working capital for exporters.
Global Headwinds Continue to Weigh
Beyond regional tensions, macroeconomic pressures continue to suppress demand. Inflationary trends and cautious consumer spending in major markets such as the US and China have led retailers to maintain lean inventories.
Additionally, the rising popularity of lab-grown diamonds is gradually reshaping demand patterns, putting further pressure on natural diamond exports – a segment already facing cyclical challenges.
Industry Navigates a Difficult Phase
Despite the downturn, the industry is actively exploring strategies to stabilize exports. The GJEPC is focusing on market diversification, targeting emerging regions to reduce dependence on traditional markets like West Asia.
There is also increased emphasis on innovation, including lightweight designs and digital retail channels, as exporters attempt to align with evolving consumer preferences and mitigate current demand weakness.
The Road Ahead for Exports
The sharp fall in March exports serves as a critical warning for India’s gems and jewellery sector. The combination of geopolitical instability, weak global demand, and structural shifts in the diamond market has created a challenging operating environment that is unlikely to ease immediately.
Recovery will depend on multiple factors, including stabilization in West Asia, improvement in consumer sentiment in key markets, and the industry’s ability to adapt to changing demand dynamics. Exporters who can diversify markets, manage inventory efficiently, and respond quickly to global trends will be better positioned to weather the downturn and regain momentum in the months ahead.
For the latest Gems and Jewelry News, keep on logging to Gems News.
