Gems, jewellery exports declined by nearly 15% in FY24: GJEPC Chairman Shah

Diamond shipments, which account for a substantial 50% share in overall exports under the category, saw a major 27-28% drop during the financial year ended March 31, Shah said.

In line with trends observed through 2023, gems and jewellery exports from India are expected to post a nearly 15% year-on-year degrowth for the full financial year 2023-24, Chairman of The Gem & Jewellery Export Promotion Council (GJEPC), Vipul Shah, told DH on the sidelines of India International Jewellery Show 2024.

“FY24 was a very challenging year, across all product categories. The main reason was China. Post Covid-19, China’s market has been very slow. It is one of the major consuming markets for our category. The US has also slowed down because of high interest rates,” Shah explained.

Diamond shipments, which account for a substantial 50% share in overall exports under the category, saw a major 27-28% drop during the financial year ended March 31, he further added.

“The biggest drop has been from China from a consumption perspective. The US has slowed down. The season wasn’t as bad as the expected cycle offtake but it was a negative. India is positive, so is all of the Gulf Cooperation Council, “ Richa Singh, who is the managing director for India and the Middle East at the Natural Diamond Council, said.

As per data available on GJEPC website, gross exports of gems and jewellery between April 2023 - February 2024, stood at $29.6 billion, reflecting a 15.31% decline compared to $34.9 billion for the same period in FY23. In constant currency terms, receipts from total exports during the period saw a 12.39% year-on-year drop to Rs 2.45 lakh crore.

Meanwhile, imports in the category during the 11 month period ended February 2024, registered a 15.14% year-on-year decline at $20.2 billion.

“Russia is one of our biggest suppliers as 40% of our supplies come from there. The G7 sanctions on Russia are directly affecting India’s imports. Currently, because the market went down, we’ve not yet felt that pinch. Once we see a growing market, that pinch may be felt,” Shah said. 

Alongside hopes of a consumption uptick in key export markets on the back of the anticipated interest rate cuts in 2024, GJEPC is exploring new markets in Latin America and countries such as Cambodia and Vietnam to increase India’s global market share in the segment.

GJEPC is also working closely with the government to secure favorable policies in upcoming trade pacts for gems and jewellery exports, including free trade agreements with the Gulf Cooperation Council, Canada, United Kingdom and the European Union.

“In the UK it is 2.5%, in Canada 5% and GCC again 5%, EU is another 2.5%,” GJEPC Executive Director Sabyasachi Ray said, elaborating on import duty rates recommended by the Union Ministry of Commerce & Industry-backed body. 

Karnataka is expected to report a $200 million contribution to the overall gems and jewellery shipments exported from India in the just concluded financial year, as per data received from GJEPC.

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