India’s gems and jewellery exports in August saw a significant decline of 18.79%, falling to USD 2,012.51 million compared to USD 2,478.23 million in the same period last year, according to data from the Gem & Jewellery Export Promotion Council (GJEPC).
The drop in exports is attributed to a broader global slowdown in consumption, as geopolitical tensions continue to dampen demand and make buyers more cautious.
Exports of cut and polished diamonds in August 2024 fell by 23.8%, amounting to USD 1,036.63 million compared to USD 1,360.39 million in the same period last year. This decline is driven by weaker international markets, prolonged geopolitical crises, upcoming U.S. elections, and low demand from key markets like China.
Imports of rough diamonds also decreased, reaching USD 4,978.04 million in August 2024, down 22.58% from USD 6,429.76 million in the same month last year. This decline is due to an oversupply of diamonds and slow-moving inventory, as traders wait to clear existing stock to revive demand.
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Polished lab-grown diamond exports in August 2024 fell by 15.30%, reaching USD 99.64 million compared to USD 117.63 million last year. The continuous decline in natural diamond prices has also affected the pricing of lab-grown diamonds, causing fluctuations.
Gold jewellery exports in August 2024 declined slightly by 1.15%, standing at USD 687.69 million compared to USD 695.65 million last year. This dip is linked to the rising price of gold, driven by expectations of a U.S. Federal Reserve rate cut.
Exports of coloured gemstones fell by 19.91%, totaling USD 156.41 million compared to USD 195.3 million in August last year, due to weak demand in global markets.
Commenting on the declining exports, Colin Shah, former chairman of GJEPC and managing director of Kama Jewelry said, “With about 60 plus countries in the world undergoing elections in the days to come, the trade activities could witness a slowdown for the time being due to various restrictions. However, we hope to see normalcy soon after the elections are over in the concerned countries, which will help in revival of demand.”
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