In the fiscal year 2024, India experienced a notable surge in exports of plain gold jewellery, marking a 61.72% increase to $6,792.24 million from $4,199.96 million in the preceding fiscal year, as per the Gem & Jewellery Export Promotion Council (GJEPC). During the period from April 2023 to September 2023, there was a 10.47% decline in the export of total gold jewellery (plain and studded), but it rebounded significantly in the latter half of the year with a growth rate of 46.91%.
Overall, exports of total gold jewellery (both plain and studded) for the fiscal year 2023-24 saw a growth of 16.75% to $11,230.18 million as compared to $9,618.80 million for previous year. Coloured gemstones also experienced a positive trend, increasing by 14% to $478.71 million in FY23-24. Moreover, platinum gold jewellery exports also witnessed a robust growth of 449.16% to $163.48 million during the same period, according to GJEPC's report.
On the other hand, the total export value of silver jewellery experienced a decrease of 44.97%, dropping to $1,618.97 million in FY24 from the comparative figure of $2,942.20 million in the previous year.
Vipul Shah, Chairman of GJEPC, says, “The increase in plain gold jewellery exports may be attributed to the pragmatic foreign trade agreements by the Govt. The implementation of India-UAE CEPA couldn't have come at a better time, especially when the industry faced various challenges with economic downturns in major export markets and escalating geopolitical concerns, all of which led to the decline in demand.”
“GJEPC has been actively working with the Government to implement favourable policies in the forthcoming trade agreements, notably those with GCC, Canada, UK, and EU. I am confident that this proactive engagement will have a positive impact on the exports of gem and jewellery to these nations in the coming months,” he added.
The UAE emerged as a significant market for India's plain gold jewellery exports, experiencing a remarkable growth rate of 107.2% to reach $4,528.66 million in FY23-24, compared to $2,185.67 million in the previous year. Notably, markets like the UAE and Bahrain accounted for over 85% of India's plain gold jewellery exports. Additionally, Australia witnessed a 37% growth in plain gold jewellery exports, attributing its development to the India-Australia Economic Cooperation and Trade Agreement (ECTA).
The GJEPC further states that the total gross exports of Gems & Jewellery experienced a 14.45% decrease, dropping to $32,285.85 million in FY 2023-24 from $37,737.05 million in the previous period. Exports of cut and polished diamonds saw a decline of 27.58%, falling to $15,967.02 million in FY 2023-24 from $22,047.72 million in the previous year.
“Despite experiencing sluggish demand for cut and polished diamonds from key export markets such as the USA, Hong Kong, and UAE, they still accounted for significant exports: USD 5,598.81 million, USD 4,360.30 million, and USD 1,714.39 million respectively,” Shah added.
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