Gem and jewellery exports from India experienced a 10.7% decline in May 2023 compared to the same period last year, according to the Gem and Jewellery Export Promotion Council (GJEPC). The decrease can be attributed to a notable drop in shipments of cut and polished diamonds. However, gold jewellery exports displayed modest growth. This article delves into the reasons behind the decline and outlines the GJEPC’s endeavors to mitigate the challenges faced by the industry and bolster exports.
- Lower shipments of cut and polished diamonds: In May 2023, the exports of cut and polished diamonds witnessed a decline of 12.17%. The reduced figure amounted to Rs 14,190.28 crore (USD 1,723.17 million), compared to Rs 16,156.04 crore (USD 2,034.36 million) in May 2022. Several factors contributed to this decrease, including:
- Impact of the Russia-Ukraine war on global trade and increased shipping costs.
- Strengthening of the US dollar against other currencies, making Indian diamonds relatively more expensive for international buyers.
- Escalating prices of gold and other raw materials, resulting in higher production costs for Indian diamond manufacturers.
- Growth in exports of gold jewellery: Amidst the decline in gem and jewellery exports, there was a 7.29% rise in the exports of gold jewellery. In May 2023, gold jewellery exports amounted to Rs 5,705.32 crore (USD 693.01 million), up from Rs 5,317.71 crore (USD 687.18 million) in May 2022. This increase suggests a relatively favorable market for gold jewellery.
- Outlook and efforts for industry revival: The GJEPC anticipates continued pressure on gem and jewellery exports in the coming months, owing to persisting headwinds in the global economy. However, the council remains proactive in collaborating with the government and industry stakeholders to mitigate challenges and rejuvenate the exports of gems and jewellery. These efforts include:
- Advocacy for supportive policies and measures to alleviate industry concerns.
- Exploring new markets and diversifying product offerings to enhance export opportunities.
- Promoting skill development and technological advancements to strengthen competitiveness.
- Encouraging sustainable practices and responsible sourcing to meet evolving consumer demands.
- Enhancing industry-wide collaboration and engagement to foster growth and innovation.
The decline in gem and jewellery exports, primarily driven by lower shipments of cut and polished diamonds, poses challenges for the industry. The GJEPC acknowledges the headwinds in the global economy and remains committed to addressing these challenges through collaboration, advocacy, and innovation. Efforts to revive the industry encompass diversification, skill development, responsible practices, and engagement with stakeholders. By navigating the existing obstacles, the industry aims to regain its momentum and foster sustainable growth in gem and jewellery exports.
