Geopolitical tensions keep gem, jewellery exporters cautious even as February shipments rise
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India’s gem and jewellery exporters are keeping a close watch on geopolitical developments and global trade conditions even as the sector posted export growth in February, according to industry body Gem & Jewellery Export Promotion Council (GJEPC).
“The industry remains watchful of evolving geopolitical developments and global trade conditions as we move into the final phase of the financial year. Exporters are closely monitoring the situation and working with trade partners to ensure continuity of shipments and supply chains,” said Kirit Bhansali, chairman of GJEPC.
Overall gross exports of gems and jewellery in February 2026 stood at $2.68 billion (₹24,340.05 crore), registering a 3.86% increase in dollar terms and 8.37% growth in rupee terms compared with $2.58 billion (₹22,460.13 crore) in February 2025.
For the period April 2025 to February 2026, exports were $25.93 billion (₹2,28,230.06 crore), marking marginal growth of 0.07% in dollar terms and 4.34% in rupee terms over the same period last year.
How exporters are adjusting to global shifts
Bhansali said the past year has been challenging for the global industry due to evolving tariff policies, geopolitical uncertainties and changing consumer demand across major markets.
“Despite these headwinds, the Indian gem and jewellery sector has demonstrated remarkable resilience,” he said.
Exporters have increasingly diversified their markets, expanding shipments to countries benefiting from free trade agreements. Exports to the United Arab Emirates rose 22.19% to $8.41 billion during April–February, while shipments to Hong Kong grew 30.91% to $5.54 billion.
However, exports to the United States declined sharply, falling 44.28% year-on-year to $4.65 billion during the same period.
The industry has also been tracking developments in U.S. tariff policy. Bhansali noted that the effective duty on jewellery exports from India is currently estimated at around 15.5%, lower than earlier proposed levels, which has helped maintain competitiveness in the studded jewellery segment.
“At the same time, the industry awaits greater clarity regarding the final tariff treatment for natural diamonds and certain loose stone categories, which are currently subject to a 10% import duty under the prevailing U.S. executive order,” he added.
What does the category split-up look like
Segment-wise, cut and polished diamond exports during April–February were $11.32 billion (₹99,662.52 crore), down 6.71% year-on-year.
Gold jewellery exports, including plain and studded jewellery, grew 5.99% to $10.71 billion (₹94,171.44 crore). Within this, plain gold jewellery exports rose 2.44% to $4.64 billion, while studded gold jewellery exports increased 8.87% to $6.07 billion, supported by higher value-added demand.
Among other categories, silver jewellery exports surged 55.41% to $1.40 billion, while platinum jewellery exports rose 43.81% to $236.62 million, reflecting strong demand in niche and premium segments.
Meanwhile, polished lab-grown diamond exports fell 8.58% to $1.04 billion, even though export volumes increased, indicating softer prices in the category.
With global trade dynamics still shifting, the industry expects exporters to continue diversifying markets while closely tracking geopolitical and tariff developments that could influence demand and supply chains.