India’s gems and jewellery exports to the US have fallen by a staggering 70% since September 2025, following the imposition of 50% reciprocal tariffs. This decline follows a 34% drop between April and August, marking the sector as the hardest hit among all US-bound export categories. Consequently, the sector’s contribution to India’s total merchandise exports has dwindled to 7%, a sharp fall from 15% in FY13.
While some categories like engineering goods and chemicals saw temporary growth due to “frontloading” of goods before the tariffs took effect, they have since experienced a decline. In contrast, products exempted from these tariffs, such as electronic goods, recorded high growth rates throughout the year. Despite the overall downturn, India’s global gem and jewellery exports grew nearly 20% in November to $2.5 billion, driven by a surge in silver jewellery and cut diamonds.
The shifting trade metrics reveal that engineering goods have now overtaken gems and jewellery as the top category in US exports with a 20.5% share. Volatile prices and shifting demand have also impacted gold jewellery exports, which saw a slight dip in November compared to last year. Industry experts warn that continued high tariffs will force structural changes in Indian export supply chains that have taken years to develop.