India’s gem and jewellery exports declined by nearly 15 per cent year-on-year in the financial year 2023-24, according to Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC).
Shah cited the slow recovery of the Chinese market post-COVID-19 and high interest rates in the US as the main reasons for the challenging year, reported DH.
Diamond shipments, which account for 50 per cent of overall exports in the category, witnessed a massive 27-28 per cent drop during the fiscal year ended March 31.
Richa Singh, Managing Director for India and the Middle East at the Natural Diamond Council, said, “The biggest drop has been from China from a consumption perspective. The US has slowed down.”
According to GJEPC data, gross exports of gems and jewellery between April 2023 and February 2024 stood at USD 29.6 billion, reflecting a 15.31 per cent decline compared to USD 34.9 billion for the same period in FY23.
In constant currency terms, receipts from total exports during the period saw a 12.39 per cent year-on-year drop to Rs 2.45 lakh crore.
Imports in the category during the 11-month period ended February 2024 registered a 15.14 per cent year-on-year decline at USD 20.2 billion.
Shah highlighted that the G7 sanctions on Russia, which supplies 40 per cent of India’s imports, are directly affecting India’s imports, and the pinch may be felt once the market recovers.
GJEPC is exploring new markets in Latin America and countries like Cambodia and Vietnam to increase India’s global market share in the segment.
The council is also working closely with the government to secure favourable policies in upcoming trade pacts for gem and jewellery exports, including free trade agreements with the Gulf Cooperation Council, Canada, the United Kingdom, and the European Union.
Karnataka is expected to report a USD 200 million contribution to the overall gems and jewellery shipments exported from India in the just-concluded financial year, as per data received from GJEPC.