India's Gems and Jewellery Exports Decline Amid Global Uncertainty

India's gems and jewellery exports fell by 13.44% in June 2023 due to muted demand in international markets. Cut and polished diamond exports saw a 25.17% decline, while gold jewellery exports rose by 7.97%, driven by stable prices. Geopolitical tensions are cited as the primary reason for the overall decline.

India's overall gems and jewellery exports witnessed an on-year decline of 13.44 per cent in June at Rs 15,939.77 crore (USD 1,909.57 million) amid muted demand in overseas markets, according to data by Gem and Jewellery Export Promotion Council (GJEPC).

The total gems and jewellery exports stood at Rs 18,413.88 crore (USD 2,240.77 million) during June 2023, the GJEPC data added.

''This decline in gems and jewellery exports is owing to the prolonged geopolitical tensions leading to economic uncertainty in the global markets, which has pushed the demand southwards in the overseas markets,'' former GJEPC chairman and Kama Jewelry Managing Director Colin Shah said.

The overall exports of cut and polished diamonds dipped by 25.17 per cent in June to Rs 8,496.87 crore (USD 1,017.87 million), compared to Rs 11,354.67 crore (USD 1,382.13 million) for the same period of the previous year.

Shah said, this was mainly due to the weak demand from the key markets, China being the key one as it accounts for approximately a third of India's cut and polished diamond exports.

However, the total gold jewellery exports went up by 7.97 per cent at Rs 5,074.27 crore (USD 608.01 million) as compared to Rs 4,699.56 crore (USD 571.63 million) for the same period of the previous year.

''The uptick in exports of gold jewellery was following the robust demand in the global market as prices are currently less volatile, which has encouraged consumers to make the most out of this situation and purchase the yellow metal as an investment avenue as well as for wearable purpose,'' Shah added.

(With inputs from agencies.)