India’s total gems and jewelery exports declined 11.49 per cent to Rs 22,873.19 crore ($2,748.01 million) in October, according to Gem and Jewelery Export Promotion Council (GJEPC) data. Gross exports during October 2022 stood at Rs 25,843.84 crore ($3,134.85 million), the data showed. Exports of cut and polished diamonds (CPD) declined by 32.70 per cent to Rs 10,495.06 crore ($1,260.91 million) last month compared to Rs 15,594.49 crore ($1,891.2 million) in the year-ago period.
Deepali Vijay Jain, founder and chairperson of DiamondXE, said Indian gems and jewelery exports witnessed a decline of 11.49 per cent in October this year due to weak global diamond demand, especially in the US and China. However, he said that despite these challenges, the future is promising. “Potential amendments to the SEZ Act and the upcoming India-UAE Comprehensive Economic Partnership Agreement (CEPA) offer prospects for export revival. Focused efforts on jewelery may particularly benefit. The industry may benefit from the recovery of the Chinese market and the upcoming festive season. “Expect a bounce back season in the US, ushering in positive momentum for FY24,” she said.
“High interest rates, inflation and geopolitical unrest have reduced market appetite. “Due to Russian rough diamond shortage, cut and polished diamond (CPD) exports have declined by 32.70 per cent and polished lab grown diamond (LGD) exports by 23.01 per cent compared to October 2022,” Jain said.
Gross exports of polished lab grown diamonds (LGD) fell 23.01 per cent to Rs 1,135.16 crore ($136.38 million) in October from Rs 1,474.38 crore ($178.73 million) in the same month of 2022.
“Total gems and jewelery exports declined in October, mainly due to lack of demand in key markets like the US and lack of supply of diamonds, which account for 50 per cent of total shipments. We are expecting a recovery during the Christmas season. “The market will pick up.” ,” GJEPC president Vipul Shah said. However, total gross exports of gold jewelery rose 33.48 per cent to Rs 8,619.38 crore ($1,035.54 million) in October from Rs 6,457.48 crore ($784.11 million) in the same period last year.