The gem and jewellery industry is an important part of India’s economy, contributing significantly to exports. However, in recent times, the industry has been facing a downturn. According to the data provided by the Gems and Jewellery Export Promotion Council, the exports of gems and jewellery fell by 23% last month, amounting to $2.42 billion, compared to $3.17 billion in the same period last year. In rupee terms, the exports declined by 20% to ₹21,085 crore from ₹26,269 crore.

One of the major reasons for this decline is global economic uncertainty. The tariff threats imposed by former US President Donald Trump affected international trade, leading to a decrease in demand for gems and jewellery, especially in key markets like the United States and China.

The export of cut and polished diamonds, which is a major part of the industry, fell by 20% in February, dropping to $1.36 billion from $1.71 billion. The weak consumer demand in major markets led to a slowdown in India’s diamond exports, as businesses struggled with piling inventory. Additionally, the import of rough diamonds also saw a sharp decline of 26%, reducing from $12.87 billion to $9.50 billion.

Lab-grown diamonds, which have gained popularity in recent years, also faced challenges. The export of polished lab-grown diamonds fell by 20%, reaching $112 million compared to $139 million last year. This drop was mainly due to price fluctuations and reduced consumer demand.

Gold jewellery exports also suffered a setback, falling by 18% in February to $753 million. One of the key reasons for this decline was the continuous rise in gold prices, which made jewellery more expensive and less affordable for buyers.

In conclusion, the gem and jewellery industry has been experiencing a significant decline due to economic challenges, fluctuating prices, and decreased consumer demand. If these trends continue, the industry may face further difficulties in the coming months. However, with proper government support, stable pricing, and renewed consumer interest, the industry may recover in the future.