Industry Optimistic as US-India Trade Talks Near Final Phase Despite Weak October Numbers

According to data released by the Gems and Jewelry Export Promotion Council, total gross gems and jewelry exports in the month of October 2025 stood at $2168.05 m (Rs. 19172.890 cr.). This is a decline of 0.27% (-27%) over $3122.52 m (Rs. 26237.1 cr.) for the same period as last year. In terms of imports, the country's total gross imports during the month of October 2025 were $1,276.8 m (Rs. 11,299.6 cr.). This is a decline of (-) 19.2% (14.89% in Rupee terms) over $1,580.1 m (Rs. 136.26 cr.) for the same period of last year.

According to the report, the decline in gems and jewelry exports and imports in October was primarily due to weakening demand in the US, Europe, and China due to US tariffs, slower economic growth, higher interest rates, and cautious consumer spending. Geopolitical uncertainties and supply chain disruptions also impacted trade. In the domestic market, fluctuations in gold and silver prices, limited financial access for exporters, and the demand for lab-grown diamonds also impacted imports and exports. Currency fluctuations and a strong dollar also impacted price competition.

Colin Shah, Managing Director of Kama Jewellery, explained that the impact of previously imposed tariffs is now being felt, increasing costs and reducing purchasing, while manufacturers are adjusting inventory after the festive season. Despite these challenges, the upcoming wedding season in the domestic market and the holiday season in Western markets are expected to improve orders and business activity. He adds that India's domestic market is particularly driven by the wedding and festival seasons, which could boost the sector.

According to the Gems and Jewellery Export Promotion Council, the Maharashtra Cabinet has formally approved the Gems and Jewellery Policy 2025. It aims to establish the state as a significant player in the global jewellery sector, providing a further boost to the sector. Shah adds that the final phase of the US-India trade talks is expected to be announced soon, and the industry is hopeful that the outcome will be positive and provide relief to the entire industry.