Key Points

On the other hand, the overall gross imports of gems & jewellery witnessed a growth of 26.55 per cent to $1.8 billion (Rs 15,587.73 crore) in July 2025, as compared to $1.43 billion (Rs 11,956.04 crore) for the same period of the previous year.

This massive rise is due to the expedited trade activities during July as a preventive measure against tariff threats kicking in from August 2025 onwards. As India heads into the festive season, and following this is the holiday season in the West, a major part of the trade has already been concluded in July 2025, the GJEPC said.

Along with this, multiple factors beyond seasonal demand, like product diversification into lightweight and contemporary designs, appealed to younger global consumers, while improved market access through trade agreements like the India-UAE CEPA enhanced competitiveness, the statement said.

The overall gross export of cut & polished diamonds recorded $1.07 billion (Rs 9,230.66 crore) in July 2025, reflecting a growth of 17.76 per cent as compared to $910.13 million (Rs 7,608.79 crore) for the same month of the previous year. This can be attributed to increased stocking by global buyers anticipating price fluctuations. Enhanced efficiency in manufacturing, better quality standards, and growing penetration into emerging markets further contributed to the export momentum, the GJEPC statement said.

Similarly, the overall gross imports of cut & polished diamonds grew by 32.02 per cent to $113.75 million (Rs 980.65 crore) in July as compared to $86.16 million (Rs 720.13 crore) for the same month of the previous year, as manufacturers and traders stepped up inventory purchases ahead of the festive and wedding seasons.

The data also show that the gross imports of rough diamonds at $4.37 billion (Rs 37,475.56 crore) between April 2025 and July 2025 have shown a growth of 1.48 per cent (4.21 per cent in rupee terms), compared with the imports at $4.3 billion (Rs 35,962.94 crore) for the previous year. With the uncertainty of trade tariffs and further depreciation of INR, traders have stocked rough diamonds, which can be processed to cater to the demand during the festive season, and this is likely to see a growth in demand not only in the home ground but also in other markets like the UAE and UK.

Kama Jewellery MD Colin Shah said: "The gems & jewellery exports are witnessing a dynamic shift, earlier due to the geopolitical tensions and now the tariff complexities. The strong performance in July 2025 is a cautionary uptick ahead of a freefall in cross-border business activities. While trade agreements have opened new avenues, challenges like high gold prices, economic uncertainties, and volatile metal markets continue."

"It is important to monitor the development of the India-US bilateral trade talks closely, as that would decide the further course of trade activities between both countries. With the current imposed 50 per cent trade tariffs, it will be difficult to maintain this growth, but domestic demand for gold is now likely to gain momentum with the start of Indian festivities and wedding season, which will be a relief for the industry," he added.

- IANS