Gems & Jewellery Sector Faces Headwinds; Seeks Government Support
In a recent analysis of the gems and jewellery sector, data from the Gem and Jewellery Export Promotion Council (GJEPC) reveals a complex picture of the industry's performance in June and the April-June quarter of this year. June saw a decline in both exports and imports, with gross exports of gems and jewellery falling by 14.78 per cent to USD 1,909 million, while gross imports decreased by 16.51 per cent to USD 1,548.93 million.
The April-June period reflected a similar trend in exports, showing a 7.44 per cent decline, although imports grew by 2.9 per cent during this time. Cut and polished diamond exports experienced a significant downturn, dropping by 26.35 per cent in June and 18.29 per cent in the April-June period.
Rough diamond imports also fell by 15.39 per cent during this quarter. Notably, even polished lab-grown diamonds, which had shown growth in previous years, saw an 8.96 per cent decline in June exports.
However, the gold jewellery segment provided a silver lining, with exports growing by 6.36 per cent in June. This growth was primarily driven by studded gold jewellery, which saw a 17.58 per cent increase.
Plain gold jewellery exports, while down 3.38 per cent in June, showed a 17 per cent increase for the April-June period. In response to these challenges, GJEPC representatives met with commerce ministry officials to seek government support.
The industry body highlighted several issues, including a slowdown in global demand leading to credit problems, and called for aggressive promotion of diamonds both internationally and domestically.
The GJEPC also raised concerns about gold availability, particularly for micro, small, and medium enterprises (MSMEs), and issues related to the non-release of bonds by banks for nominated agencies.
Additional proposals included the introduction of a tariff value and duty drawback scheme for platinum, organising a Banking Summit to boost industry confidence, and the establishment of a Jewellery Park to strengthen the sector.
This report underscores the complex dynamics at play in the gems and jewellery sector, balancing areas of growth against significant challenges, as the industry seeks government intervention to navigate current market conditions.
Source: https://knnindia.co.in/