According to data released by the Gem and Jewellery Export Promotion Council (GJEPC), the apex body for the Gem & Jewellery (GJ) Industry in India, the overall gross exports of Gems & Jewellery in June 2024, stood at USD 1909.57 million (Rs. 15939.770 crores) showing a decline of 14.78% compared to USD 2240.77 million (Rs. 18413.88 crores) for the same period last year.
This decline is owing to the prolonged geopolitical tensions leading to economic uncertainty in the global markets, which has pushed the demand southwards in the overseas markets.
In terms of the overall imports of Gems & Jewellery for June 2024 witnessed a decline of 16.51%, which stood at USD 1548.93 million (Rs. 12926.77 crores), as compared to USD 1855.27 million (Rs. 15247.75 crores) for the same period last year. This could be attributed to the dampened demand seen in the domestic market.
Cut and Polished Diamonds: The overall gross export of Cut & Polished (C/P) diamonds saw a decline of 26.35% in June 2024, standing at USD 1017.87 million (Rs. 8496.87 crores) compared to USD 1382.13 million (Rs. 11354.67 crores) for the corresponding period of the previous year.
This can be attributed to the weak demand from the key markets, China being the key one as it accounts for approximately a third of India’s cut and polished diamond exports. In terms of the overall gross imports of Cut & Polished diamonds, it saw a decline of 35.9% at USD 77.25 million (Rs. 644.8 crores) when compared to USD 120.51 million (Rs. 990.41 crores) for the same period last year.
Rough Diamonds: Gross imports of rough diamonds stood at USD 3392.46 million (Rs. 28291.59 crores) in June 2024, showing a decline of 15.39% when compared with the imports for the same period last year which stood at USD 4009.69 million (Rs. 32949.09 crores).
Polished Lab Grown Diamonds: The total gross export of Polished Lab Grown Diamonds during June 2024 stood at USD 88.83 million (in Rs. 741.48 crores) showing a decline of 8.96% as compared to USD 97.57 million (Rs. 801.82 crores) last year. The key reason behind this can be attributed to the fluctuating prices of lab-grown diamonds in the global markets which has pushed the demand downwards.
Gold Jewellery: The total gross export of Gold Jewellery in June 2024 stood at USD 608.01 million (Rs. 5074.27 crores), showing an uptick of 6.36% compared to USD 571.63 million (Rs. 4699.56 crores) for the same period last year. This is owing to the robust demand in the global market as gold prices are currently less volatile, which has encouraged consumers to make the most out of this situation and purchase the yellow metal as an investment avenue as well as for wearable purpose, thereby driving the demand.
Coloured Gemstones: Provisional gross export of Coloured Gemstones during June 2024 stood at USD 91.18 million (in Rs. 760.74 crores) witnessing a decline of 28.78% compared to USD 128.02 million (Rs. 1052.47 crores) for the same period last year.
This is due to the cooling down of demand in the international markets. The demand for Coloured Gemstones is primarily driven by the upper middle class and beyond which majorly shapes the demand without the tendency to get affected by price dynamics.
Commenting on the same, Colin Shah, MD, Kama Jewelry, said, “The gems & jewellery industry has been going through a tough time for over a year. Moreover, the continuous geo-political tensions have added more woes to the already ailing industry. Also, with 60+ countries undergoing elections this year, we foresee softening of demand in the said countries as trade activities may be restricted during these times.
Hence, moving forward, we need to wait and watch how the events unfold as that will be the deciding factor of the course of trade activities for the rest of the year. However, with the festive season approaching, we hope to see some revival in demand supported by progress in trade activities.
Additionally, with budget in sight, we request the Finance Minister to take some key measures for the gems and jewellery industry so that it is empowered to ride through this challenging time.”
