India has long been a titan in the global gem and jewelry sector, a legacy built on centuries of unparalleled craftsmanship and expertise. From the legendary Golconda diamonds of the past to the intricate designs created by skilled artisans today, "Made in India" is synonymous with quality and artistry in the international market. As experts immersed in the world of lab diamond jewelry, we observe with keen interest the dynamic trends that shape India's significant contribution to the global adornment landscape.

India's Prominent Position in the Global Gem and Jewelry Market

India stands as a powerhouse in the global gem and jewelry industry, playing a crucial role in various segments, particularly diamond cutting and polishing. The country processes a vast majority of the world's rough diamonds, transforming them into the sparkling gems that adorn jewelry worldwide. This intricate work is a cornerstone of India's export strength. Beyond diamonds, India is a key player in gold jewelry, colored gemstones, and now, increasingly, lab-grown diamonds.

Recent Export Trends: Navigating Global Headwinds

According to recent data from the Gem & Jewelry Export Promotion Council (GJEPC), India's overall gems and jewelry exports experienced a decline of 11.72% in the fiscal year 2024-25, totaling USD 28.5 billion. This is compared to USD 32.2 billion in the previous fiscal year.

Several factors have contributed to this downturn, as highlighted in various economic reports

• Geopolitical Tensions: Ongoing global uncertainties have dampened consumer demand in key export markets like the United States and China.
• Correction in Rough Diamond Prices: A decrease in rough diamond prices impacted the overall value of cut and polished diamond exports, which saw a dip of 16.75% in FY25 to USD 13.29 billion, according to GJEPC data.

However, the picture is not uniform across all categories. While silver jewelry exports saw a significant decrease of over 40%, exports of platinum jewelry witnessed a growth of 11.79% in FY25, according to GJEPC reports. Gold jewelry exports remained relatively stable, showing only a marginal decline of 0.11%.

The Rise of Lab Grown Diamonds in Exports

A notable trend influencing India's export portfolio is the increasing prominence of lab-grown diamonds. India has rapidly become a leading hub for the manufacturing and export of lab-grown diamonds, leveraging its expertise in diamond cutting and polishing.

In the fiscal year 2024-25, exports of polished lab-grown diamonds amounted to USD 1.27 billion, a decrease of 9.64% compared to the previous year's USD 1.40 billion, based on GJEPC data. While this shows a recent dip alongside other categories, information from economic reports indicates the long-term trend points towards significant growth in this segment. India accounts for a significant share of global lab-grown diamond exports, particularly to markets like the US and Europe, where demand for ethically sourced and sustainable options is growing.

Challenges and Opportunities

The Indian gem and jewelry export sector, while resilient, faces ongoing challenges. Stiff competition from other manufacturing countries, fluctuating global commodity prices (gold, silver, and diamonds), and evolving regulatory landscapes in export markets all require continuous adaptation. Furthermore, changing consumer preferences globally, including the rising demand for sustainable and ethically sourced jewelry, necessitate innovation in product development and marketing strategies.

Navigating the Currents: A Problem-Solving Perspective

One significant challenge facing India's gem and jewelry export sector is effectively communicating the value proposition of different diamond categories to diverse international consumer bases and navigating the potential market disruption caused by the rapid growth of lab-grown diamonds. Traditionally, the industry's export strength was built on the trade of natural diamonds, with established marketing narratives centered on rarity and geological heritage. With the rise of lab-grown diamonds, which offer identical physical and optical properties but a different origin story and price structure, there is a need to clearly differentiate and position both products in the minds of global buyers. This isn't about declaring one "better" than the other but about providing transparency and empowering consumers with choice. The solution lies in a multi-pronged approach: investing in clear, consistent consumer education globally about the distinct characteristics and benefits of both natural and lab-grown diamonds, leveraging India's reputation for trust and quality in both segments, and developing targeted marketing strategies that speak to the varied priorities of consumers in different export markets—whether they prioritize traditional rarity or modern, sustainable brilliance and value. By proactively shaping the narrative and highlighting India's expertise across the entire spectrum of diamonds, the industry can turn this perceived challenge into a significant opportunity, reinforcing its position as a versatile and forward-thinking global leader in gem and jewelry exports.

Future Outlook

Despite recent global headwinds, India's gem and jewelry industry remains optimistic about its future export prospects. The focus on diversifying export markets beyond traditional destinations, increasing the adoption of technology in manufacturing and design, and strengthening marketing efforts globally are key strategies. The growing global acceptance of lab-grown diamonds also presents a significant opportunity for India to expand its market share by offering a wider range of products that cater to the evolving demands of international consumers seeking both brilliance and responsible sourcing.

Information regarding export figures and trends in this blog post is based on data from publicly available reports by trusted sources such as the Gem & Jewelry Export Promotion Council (GJEPC) and analysis published by economic news outlets covering the sector in India, as found through recent searches. For the most current and detailed official statistics, consulting the official publications from these bodies is recommended.

India's gem and jewelry export sector is a testament to its rich heritage, skilled workforce, and adaptability. As the global market continues to transform, India is well-positioned to maintain its prominent role, embracing innovation and ethical practices to ensure its sparkling creations continue to grace the world stage.