The Crossbill News Desk
Indian diamond exporters are facing a slowdown in the US market as high tariffs imposed by Washington have curtailed the sale of loose diamonds, even as overall jewellery sales in the country show an upward trend.
According to Deccan Chronicle, industry analysts have warned of challenging months ahead for India’s diamond trade.
A recent report by market analytics firm Tenoris LLC revealed that finished jewellery sales by US specialty retailers grew by 11.6% year-on-year in October, while overall revenue from jewellery rose by 14%. Diamond-set jewellery, in particular, showed resilience, recording a 9% increase in revenue and a more than 15% jump in the average spend per item compared to last year.
However, despite strong retail demand, the sale of natural loose diamonds declined marginally, with revenues slipping by 0.5% year-on-year during the same month. Rising import duties and surging gold prices have pushed up production and retail costs, the report said.
Finished jewellery prices rose by 17%, and diamond jewellery costs climbed over 25%, with the 50% tariff on Indian-origin jewellery imported into the US being only partially absorbed by the supply chain. Analysts warn that consumer prices could rise further if the trend continues.
Vipul Shah, former chairman of the Gems and Jewellery Export Promotion Council, said the slump in loose diamond sales has hit Indian exporters hard.
“The exports in October have been quite slow and could be down by 30% during this festive season in the US,” he said.
Data from India’s Gems and Jewellery Export Promotion Council showed that between April and September 2025, the country’s gross exports of cut and polished diamonds declined by 9.57% in both value and volume compared to the same period last year.
Adding to the industry’s woes, air freight movement between India and the US has also dropped sharply.
According to a Times of India report, freight cargo from India to the US fell to 4,319 tonnes between January and June this year, well below the pandemic levels of 7,152 tonnes recorded during the same period last year.
Between 2020 and 2023, cargo volumes between the two countries ranged from 5,000 to 9,000 tonnes, but this year’s figures mark the steepest decline since 2016, when freight volumes stood at 3,750 tonnes. Representatives from the Federation of Freight Forwarders Association told the paper that the US tariffs had significantly weakened demand, forcing exporters to scale down their order sizes.
According to Deccan Chronicle, industry analysts have warned of challenging months ahead for India’s diamond trade.
A recent report by market analytics firm Tenoris LLC revealed that finished jewellery sales by US specialty retailers grew by 11.6% year-on-year in October, while overall revenue from jewellery rose by 14%. Diamond-set jewellery, in particular, showed resilience, recording a 9% increase in revenue and a more than 15% jump in the average spend per item compared to last year.
However, despite strong retail demand, the sale of natural loose diamonds declined marginally, with revenues slipping by 0.5% year-on-year during the same month. Rising import duties and surging gold prices have pushed up production and retail costs, the report said.
Finished jewellery prices rose by 17%, and diamond jewellery costs climbed over 25%, with the 50% tariff on Indian-origin jewellery imported into the US being only partially absorbed by the supply chain. Analysts warn that consumer prices could rise further if the trend continues.
Vipul Shah, former chairman of the Gems and Jewellery Export Promotion Council, said the slump in loose diamond sales has hit Indian exporters hard.
“The exports in October have been quite slow and could be down by 30% during this festive season in the US,” he said.
Data from India’s Gems and Jewellery Export Promotion Council showed that between April and September 2025, the country’s gross exports of cut and polished diamonds declined by 9.57% in both value and volume compared to the same period last year.
Adding to the industry’s woes, air freight movement between India and the US has also dropped sharply.
According to a Times of India report, freight cargo from India to the US fell to 4,319 tonnes between January and June this year, well below the pandemic levels of 7,152 tonnes recorded during the same period last year.
Between 2020 and 2023, cargo volumes between the two countries ranged from 5,000 to 9,000 tonnes, but this year’s figures mark the steepest decline since 2016, when freight volumes stood at 3,750 tonnes. Representatives from the Federation of Freight Forwarders Association told the paper that the US tariffs had significantly weakened demand, forcing exporters to scale down their order sizes.
Comments (0)
Leave a Comment