Are India's Gems & Jewellery Exports Soaring 16% in July Ahead of US Tariff Deadline?

New Delhi, Aug 13 (NationPress) The total gross exports for gems & jewellery experienced a remarkable surge of 15.98%, reaching $2.18 billion (Rs 18,756.28 crore) in July this year, compared to $1.88 billion (Rs 15,700 crore) during the same month last year, as per the data shared by the Gems and Jewellery Export Promotion Council (GJEPC) on Wednesday.

Conversely, gross imports of gems & jewellery saw a significant rise of 26.55%, totaling $1.8 billion (Rs 15,587.73 crore) in July 2025, up from $1.43 billion (Rs 11,956.04 crore) in the same period last year.

This dramatic increase can be attributed to heightened trade activities as a precaution against impending tariff threats set to commence from August 2025. With India's festive season approaching, along with the holiday season in Western countries, substantial portions of trade were finalized in July 2025, according to the GJEPC.

Furthermore, various factors beyond seasonal demand, such as product diversification into lightweight and contemporary designs, have attracted younger global consumers. Improved market access via trade agreements like the India-UAE CEPA has also increased competitiveness, the statement noted.

Gross exports of cut & polished diamonds amounted to $1.07 billion (Rs 9,230.66 crore) in July 2025, marking a 17.76% increase from $910.13 million (Rs 7,608.79 crore) for the same month last year. This growth can be linked to increased stocking by global buyers who anticipate price fluctuations. Enhanced manufacturing efficiency, better quality standards, and deeper penetration into emerging markets have also fueled export momentum, as per the GJEPC.

Similarly, gross imports of cut & polished diamonds surged by 32.02% to $113.75 million (Rs 980.65 crore) in July compared to $86.16 million (Rs 720.13 crore) the previous year, as manufacturers and traders increased inventory purchases ahead of the festive and wedding seasons.

Data indicates that gross imports of rough diamonds totaled $4.37 billion (Rs 37,475.56 crore) from April 2025 to July 2025, reflecting a 1.48% growth (4.21% in rupee terms) compared to $4.3 billion (Rs 35,962.94 crore) the previous year. With the uncertainty surrounding trade tariffs and further depreciation of the INR, traders have been stocking rough diamonds to meet demand during the festive season, anticipating a surge not only domestically but also in markets like the UAE and UK.

Kama Jewellery MD Colin Shah commented: "The gems & jewellery export sector is experiencing a significant transition due to geopolitical tensions and tariff complexities. The strong performance in July 2025 serves as a precautionary signal ahead of potential declines in cross-border trade activities. While trade agreements have opened new pathways, challenges like elevated gold prices, economic uncertainties, and fluctuating metal markets persist."

“Monitoring the progress of India-US bilateral trade discussions is crucial, as it will influence future trade activities between the two nations. With the current 50% trade tariffs in place, sustaining this growth will be challenging; however, domestic demand for gold is expected to rise with the onset of Indian festivities and wedding season, offering some relief for the industry,” he added.