G&J Exports to West Asia Plunge 35 PC in March; Tariffs Hit FY26 Exports
The Iran war hit the exports to the West Asia region, which includes India’s biggest gems and jewellery market, UAE.
Chennai: As the exports to West Asia remained hit by the Iran war, gems and jewellery exports declined 35 per cent in March. Even the surging gold and silver prices failed to support gems and jewellery exports in FY26, which declined 3.3 per cent to $27.7 billion. Amidst tariffs, the exports to the US plunged 45 per cent in FY26.
The overall exports of gems and jewellery in March declined 35.23 per cent to $1783.67 million against $2753.72 million in the same month last year. The Iran war hit the exports to the West Asia region, which includes India’s biggest gems and jewellery market, UAE.
However, for the entire fiscal, the sector managed to grow its exports to UAE by 10.52 per cent to $8.69 billion.
Despite this, the overall exports of gems and jewellery in FY26 declined 3.32 per cent to $27.7 billion. The sector was hit by geopolitical uncertainties, evolving US tariff regimes, and emerging tensions in West Asia.
The surge in gold and silver prices failed to support exports, indicating sharp decline in shipment volumes. Gold prices moved up 61 per cent in FY26, while silver gained 128 per cent. Gold jewellery exports, including both plain and studded segments, marginally declined by 0.03 per cent to $ 11.36 billion in FY26. Of this, plain gold jewellery exports declined by 7.42 per cent.
Silver jewellery exports grew 52.21 per cent to $ 1.47 billion, despite a 128 per cent surge in the metal prices.
Exports of cut and polished diamonds were down by 8.52 per cent to $12.16 billion.
Amidst the tariffs, exports to the US declined 45 per cent in FY26 to $5 billion against $9.2 billion in FY25.
“Even as the US market saw a decline due to tariff-related uncertainties, markets such as the UAE, Hong Kong, Australia, and Canada demonstrated strong growth. While exports to the UAE witnessed strong growth of over 22 per cent during April–February 2026, the emerging tensions in the region moderated the FY26 growth,” said Kirit Bhansali, Chairman, GJEPC.
