India’s Gems and Jewellery Exports Plunge 35% in March Amid Weak Demand

Why It Matters

The export slump highlights vulnerability of India’s high‑value jewellery segment to geopolitical and price shocks, while rising imports signal strategic inventory building that could shape future pricing and profitability.

Key Takeaways

• March exports fell 35% to $1.78 billion, the steepest drop this year
• Gold jewellery shipments plunged 48% as high gold prices deterred buyers
• Imports rose 17% to $2.31 billion, signaling raw‑material stockpiling
• Silver jewellery exports surged 52% to $1.47 billion, driven by affordability
• Cut‑and‑polished diamond imports quadrupled, anticipating demand rebound

Pulse Analysis

Contrasting the export slump, imports surged 17% to $2.31 billion as manufacturers stocked up on gold, rough diamonds and polished stones. The four‑fold rise in cut‑and‑polished diamond imports, reaching $211 million, signals a deliberate inventory build‑up aimed at cushioning future price volatility. This stockpiling behavior reflects confidence among Indian producers that demand will recover once geopolitical pressures ease and price levels stabilize. However, the influx of raw material also tightens domestic supply, potentially pressuring local prices and affecting profit margins for mid‑size jewelers.

The Indian gems and jewellery sector recorded a dramatic contraction in March, with total exports sliding 35% to $1.78 billion. Diamond shipments fell 27% and gold jewellery plunged 48%, reflecting a confluence of weak global demand, lingering geopolitical tension from the Iran conflict, and a sharp correction in diamond prices. Even lab‑grown diamond exports slipped 28%, underscoring price competition and inventory adjustments in key markets such as the United States and Europe. The downturn marks the steepest monthly decline since the sector’s 2022 peak.

The sector’s shift toward more affordable metals is evident in the 52% jump in silver jewellery exports, now worth $1.47 billion, while gold‑based products remain under pressure. Analysts view this rebalancing as a short‑term hedge against high gold prices and a sign that consumers are prioritizing cost‑effective luxury. Looking ahead, a gradual revival in western markets could restore diamond and gold jewellery demand, but the pace will depend on macro‑economic stability and the resolution of regional conflicts. Companies that manage inventory prudently and diversify material mix are likely to emerge stronger.