Gem, jewellery exports down 23% in July on global uncertainty
Tue Aug 20 2024
Gem and jewellery exports continued their downward trend and plunged 23 per cent in July to $1.66 billion (₹13,922 crore) against $2.17 billion (₹17,832 crore) logged in the same period last year, amid growing geopolitical concern.
Imports declined 17 per cent to $1.40 billion (₹11,739 crore) against $1.68 billion (₹13,832 crore) registered in the same period last year, according to the Gems and Jewellery Export Promotion Council data.
Cut and polished diamond exports were down 23 per cent to $908 million ($1.17 billion) due to a sharp decline in diamond trade with China, which accounts for 10-15 per cent of exports from India. The import of cut and polished diamond also decline 51 per cent to $82 million ($166 million).
Rough diamond imports
Imports of rough diamonds dropped by 16 per cent to $4.3 billion (from $5.11 billion) due to weak demand for value-added products. As the world’s largest diamond processing hub, the sector in India is experiencing a sense of gloom amid this downturn in demand.
Shipments of polished lab grown diamonds also fell 10 per cent to $95 million ($105 million) in July due to weak demand amid falling natural diamonds prices.
Gold jewellery export also dropped 12 per cent to $530 million $603 million due to fall in global demand as gold prices inched up.
Export of coloured gemstones was down at $114 million ($153 million) on the back of subdued demand.
Geo-political tensions
Colin Shah, MD, Kama Jewelry, said the industry has been going through uncertain times with muted trade activities for the past year and a half.
The re-emergence of geo-political tensions in the West Asia have again turned the scenario towards uncertainty, he said.
Source: https://www.thehindubusinessline.com