India’s Gems & Jewellery Exports See a Dip — What’s Behind the Decline?

India’s gems and jewellery exports dropped by 11.72% in FY 2024-25, reflecting a broader set of global and structural challenges impacting the sector. Here’s what’s driving the decline: * Geopolitical tensions, especially in the Middle East and Russia-Ukraine region, have disrupted supply chains and affected discretionary luxury spending across key markets like the US, UAE, and Europe. * Global inflation and interest rate volatility have also dampened consumer sentiment, making high-value purchases like jewellery less frequent. * The demand for cut and polished diamonds—a major export component—has softened due to a rise in lab-grown alternatives and changing consumer preferences. Industry Implications: This decline could impact major Indian players in the sector: -

– With Tanishq as a flagship brand, Titan has a strong export and NRI-facing business that could feel some ripple effects. - – A key exporter of gold jewellery, the firm may experience export headwinds from reduced global orders. - , while primarily domestic-facing, also has exposure to Gulf markets which are sensitive to global trade flows. - – Focused on online jewellery exports, it could see margin pressure if input costs rise or order volumes fall. While domestic demand remains stable—especially around key festive and wedding seasons—the global headwinds signal the need for Indian jewellery exporters to diversify markets, invest in branding, and potentially tap into newer segments like lab-grown diamonds and digitally enabled retail exports. Source: NDTV Profit No Recommendations