Gems and Jewellery Exports Experience Significant Decline Amid Geopolitical Tensions

The Gems and Jewellery Export Promotion Council reported a 10.29% drop in overall exports due to geopolitical issues and reduced demand in China. Notably, both the Cut and Polished diamonds and gold jewellery segments saw declines. The export slowdown is impacting key markets, influencing global trade patterns.

In a substantial downturn, the gems and jewellery export sector has reported a 10.29% year-on-year decline, largely attributed to ongoing geopolitical tensions and a contraction in demand from China, disclosed the Gem and Jewellery Export Promotion Council (GJEPC) on Friday. December exports plunged to USD 1,967.98 million from USD 2,193.82 million the previous year.

GJEPC chairman Vipul Shah expressed concerns over the geopolitical climate's detrimental impact on export demand. The weakened demand, especially in pivotal markets like China, has been blamed for the sector's current struggles.

A breakdown of the figures revealed that Cut and Polished diamonds exports decreased by 10.36% in December, while Polished Lab Grown Diamonds and gold jewellery exports fell by 5.48% and 3.56% respectively. Provisional data from GJEPC paint a challenging landscape for the industry's future prospects.

(With inputs from agencies.)