Indian GJ Imports sees marginal spike of 3.95% y-o-y in April 2024

May 18, 2024

According to data released by GJEPC, the apex body for the Gems & Jewellery Industry in India, the overall imports of Gems & Jewellery for the month of April 2024 witnessed a marginal 3.95% growth, at USD 1891.49 million (Rs. 15772.69 crores), as compared to USD 1819.54 million (Rs. 14919.69 crores) for the same period previous year. While the demand remains a bit subdued owing to elections in the country, the slight uptick can be contributed to occasional spike in demand due to Akshaya Tritiya.

On the other hand, the overall gross exports of Gems & Jewellery in April 2024 stood at USD 2074.85 million (Rs. 17307.280 crores) showing a decline of 11.37% compared to USD 2341.06 million (Rs. 19198.4 crores) for the same period last year owing to economic uncertainties and volatility at a global level. While the external factors dominate the gems & jewellery exports, there has been tremendous push given from the domestic front and further accessibility in ease of doing business will add high-octane boost to growth.

Cut and Polished Diamonds: The overall gross export of Cut & Polished diamonds saw a decline of 16.76% in the month of April 2024, standing at USD 1154.8 million (Rs. 9632.7 crores compared to USD 1387.38 million (Rs. 11378.15 crores) for the corresponding period of the previous year. But in terms of the overall gross imports of Cut & Polished diamonds for the April month, it stood at USD 88.13 million (Rs. 735.1 crores), showing a growth of 19.28% compared to USD 73.89 million (Rs. 605.79 crores) for the same period last year.

The sentiment remains dull at the global front as the geopolitical tension continue to prevail and impact the purchasing power of end-buyers of diamond jewellery. On a contrary, domestic demand continues to prevail.

Rough Diamonds: Gross imports of rough diamonds stood at USD 1190.77 million (Rs 9928.24 crores) in April 2024, showing a decline of 19.27% when compared to USD 1475.03 million (Rs. 12094.61 crores) for previous year as diamond traders and jewellers await to ease the inventory pile-up.

Polished Lab Grown Diamonds: Provisional gross export of Polished Lab Grown Diamonds during April 2024 stood at USD 83.77 million (in Rs. 698.74 crores) showing a degrowth of 18.2% as compared to USD 102.4 million (Rs. 839.93 crores) last year. This degrowth can be attributed to the strong competition from the overseas counterparts like US, China and Singapore who are increasingly growing their investments in the Lab Grown Diamond industry. However, with factors like price advantage due to low labour costs, India’s ability to cater to the growing demand of LGDs through its production capabilities, enhanced technology, robust access to overseas markets due to well-established trade relations and supportive government policies and initiatives will definitely play its part in the long-term horizon thereby boosting exports.

Gold Jewellery: The total gross export of Gold Jewellery in the month of April 2024 stood at USD 718.34 million (Rs. 5991.94 crores), showing an uptick of 11.03% compared to USD 646.97 million (Rs. 5304.9 crores) for the same period last year. This is due to the robust overseas demand driven by a separate buyer segment who invests in wearable jewellery to avail the benefits of investing in gold as an asset class as well as a cushion against inflation and economic uncertainty.

Coloured Gemstones: Provisional gross export of Coloured Gemstones during April 2024 was at USD 24.8 million (in Rs. 206.91 crores) witnessing a decline of 35.39% compared to USD 38.38 million (Rs. 314.81 crores) for the same period last year.

Commenting on the same, Mr. Colin Shah, MD, Kama Jewelry, said, “The gems & jewellery industry has been sailing though rough waters for more than a year. With strong headwinds from multiple economic influences at a global level, the exports have taken a severe hit due to poor demand. Along with this, the election season across 60+ countries in this year is also a major factor adding to the impact. With the possible hope of countries at conflicts coming at a truce, we look forward for the exports to pick up in the upcoming festive season.”

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