Exports of gems and jewellery in November declined by 13 per cent compared to the same month last year and stood at USD 1986.21 million (Rs. 16,763.13 crores) compared to USD 2281.4 million (Rs. 19,005.46 crores), according to figures released by Gem & Jewellery Export Promotion Council (GJEPC).
The economic uncertainty that prevails at an international level reflects constant instability in demand and, ultimately, trade practices.
The overall gross export of cut and polished diamonds declined by 39.81 per centin November 2024, standing at USD 666.01 million (Rs. 5,622.11 crores) compared to USD 1106.53 million (Rs. 9,217.88 crores) for the corresponding period last year. This can be attributed to the muted demand in the international markets.
Similarly, the overall gross imports of cut and polished diamonds saw a decline of 79.63 per cent, which stood at USD 54.03 million (Rs. 455.94 crores) when compared to USD 265.32 million (Rs. 2,210.41 crores) for the same period last year.
Gross imports of rough diamonds stood at USD 6960.40 million (Rs 58223.36 crores) in November 2024, showing a decline of 20.97 per cent when compared with the imports for the same period last year which stood at USD 8807.19 million (Rs. 72684.02 crores). With the global economic uncertainty looming, consumers have been taking a cautious step in terms of investing in diamonds, which is a non-yielding asset. However, with the ongoing wedding and holiday season, we hope to see a rebound in demand.
The total gross export of polished Lab Grown Diamonds during November 2024 stood at USD 62.88 million (Rs. 530.86 crores) showing a decline of 42.37 per cent as compared to USD 109.10 million (Rs. 908.89 crores) for the previous year. This is due to the muted demand in the global markets, which has led to low consumption.
The total gross export of gold jewellery in November 2024 stood at USD 1132.68 million (Rs. 9558.44 crores), showing a significant growth of 40.57 per cent compared to USD 805.76 million (Rs. 6712.53 crores) for the same period last year. Gold prices have been touching new levels, making it the most desirable asset class to behold in times of economic uncertainty that the world is currently going in.
Gross export of coloured gemstones during November 2024 stood at USD 285.45 million (in Rs. 2391.56 crores) witnessing a decline of 11.52 per cent compared to USD 322.63 million (Rs. 2665.56 crores) for the same period last year.
Commenting on the export numbers, Colin Shah, managing director of Kama Jewelry and dormer chairman of GJEPC said, “The prolonged geopolitical tension continues to remain a matter of concern for the Indian Gems and Jewellery industry, which has led to a slowdown in exports after seeing an uptick in the previous month. Therefore, any critical developments on the geopolitical front may continue to disrupt trade activities in the times ahead. However, with the holiday season around the corner, we expect the demand to stay upbeat driven by heightened buying sentiment.”
