Mumbai: (By Akash Talesara): As someone closely associated with the diamond and jewellery industry, I view 2025 as a year of stabilization, recalibration and disciplined execution. While the sector demonstrated resilience across key markets, certain external factors, particularly trade-related developments had a tangible impact on overall performance.
Performance in 2025:
The year 2025 was largely characterized by consolidation and gradual recovery. Demand across markets such as India, the Middle East, and the U.S. showed selective improvement, with India’s domestic consumption remaining a key growth driver, supported by weddings, festivals, and aspirational buying.
However, U.S. tariff-related developments during the year impacted business sentiment and trade flows, especially for exporters dependent on the North American market. Increased duties and policy uncertainty led to cautious ordering, margin pressures, and the need for recalibration of pricing and supply-chain strategies. While the impact was not uniform across categories, it did result in short-term disruptions and delayed decision-making for certain players.
Despite these challenges, demand in 2025 remained focused on lightweight, design-led jewellery and value-driven diamond offerings. Organized players continued to strengthen branding, certification, and transparency, while manufacturers and retailers prioritized inventory rationalization, cost efficiencies, and prudent working capital management. Gold price volatility and selective softness in discretionary spending further reinforced the importance of operational discipline.
Outlook for 2026:
Looking ahead to 2026, I remain cautiously optimistic about the industry’s prospects. With expectations of greater clarity on global trade policies and a more stable macroeconomic environment, business confidence is likely to improve gradually.
A key trend expected to gain momentum in 2026 is the increasing adoption of lower karatage gold, particularly 9KT and 14KT, in daily-wear and lifestyle jewellery categories. As consumers seek affordability without compromising design or durability, lower karat gold offers an effective value proposition. This shift is expected to drive higher purchase frequency, attract younger consumers, and support volume-led growth across domestic and export markets. Design-led differentiation, particularly in daily-wear, office-wear, and lifestyle jewellery, will be a critical competitive lever in 2026. As consumer preferences continue to shift from occasion-driven purchases to everyday, versatile jewellery, design will play a central role in influencing buying decisions.
Customers are increasingly seeking minimalist, functional, and contemporary designs that seamlessly integrate with modern work and lifestyle requirements. Jewellery that is lightweight, comfortable, easy to layer, and suitable for prolonged wear is gaining preference over traditional heavy pieces. This trend is especially pronounced among younger professionals and urban consumers who value subtle elegance, versatility, and practicality.
Mr. Akash Talesara is the President of Sales and Business Development, Sky Gold and Diamonds ltd.
