India’s gems and jewellery sector witnessed a setback in February 2024 as exports dipped by 12.66% compared to the same period last year, amounting to $3.05 billion. Conversely, imports experienced a slight uptick of 1.12%, reaching $2.26 billion. A notable exception to this trend was the surge in gold jewellery exports, which rose by 16.43% to $821.55 million. However, these figures underscore a widening trade deficit in the gems and jewellery industry.
The Gem Jewellery Export Promotion Council (GJEPC) report highlighted the decline in gross exports of gems and jewellery, amounting to $3046.84 million (₹25274.640 crores) in February 2024, marking a 12.66% decrease (-12.34% in ₹ terms) compared to the previous year’s $3488.51 million (₹28832.86 crores).
Conversely, gross imports of gems and jewellery saw a marginal increase, totaling $2.26 billion (₹18,765.3 crore), indicating a 1.12% growth (1.6% in ₹ term) compared to $2.23 billion (₹18,470.62 crore) for the same period last year.
Gold jewellery exports, however, painted a brighter picture, with a notable growth of 16.43% ($821.55 million or ₹6,815.65 crore) compared to the previous year’s $705.61 million (₹5,829.65 crore).
Colin Shah, Managing Director of Kama Jewelry, expressed concerns over the prolonged downtrend in Indian gems and jewellery exports, attributing it to global political instability, increased export duties, and rising prices of precious metals. He also noted a subdued demand in international markets due to weakened purchasing power.
Despite the overall sluggishness in the industry, even lab-grown diamonds failed to meet growth expectations, showing only a modest 2.90% increase in exports.
Shah pointed out the resilience of domestic demand, reflected in the rise of overall imports of gems and jewellery. He attributed this robust demand to economic stability, higher disposable incomes, and the sentimental value associated with precious metals in the Indian market.
Looking ahead, Shah expressed cautious optimism, anticipating a gradual recovery in exports, particularly with potential rate cuts by the US Federal Reserve and improved economic conditions as 2024 progresses.
