2024 Ahoy! New markets to provide fillip to gems and jewellery exports
If the year 2023 was so far of fluctuating fortunes for the Indian gems and jewellery exporters due to various challenging global factors, they expect exports to pick up and stabilise by the second half of the year 2024.
''Due to the sustained demand slump in the second and third quarter, we are expecting the overall exports to be marginally down for the financial year 2023-24 and expect exports to pick up and stabilise by the second half of the year 2024'', Vipul Shah, Chairman, Gem & Jewellery Export Promotion Council (GJEPC) tells Fortune India.
India is ranked 5th in global gems and jewellery exports after Switzerland, U.K., USA and Hong Kong with 4.7% market share. Global exports were valued at US$846.24 billion, last year.
The overall gross exports of gems & jewellery was worth $20,512.65 million (₹16,9712.45 crore) in April to November of 2023, with a decline of 21.86% (-18.45% in rupee terms) as compared to $26,251.52 million (₹2.08 lakh crore) for the same period previous year. Similarly, overall gross imports were at $13,550.873 million (₹1.12 lakh crore), a decline of 23.83% (-20.56% in rupee term) as compared to $17,789.64 million (₹14,0995.19 crore) for the same period of previous year. However, signs of revival are there with the exports growing 11.83% to ₹19,855.17 crore ($2,429.86 million) in November compared to the year-ago period, on the back of resumption of manufacturing activities after Diwali.
He notes that the Indian industry has displayed resilience in face of global challenges like the U.S. inflation, geo-political issues in Russia-Ukraine etc and are now encouraged by the gradual recovery in demand in the last quarter of the year from prime markets like the US, GCC, and Europe. Exporters also expect a rise in demand for G&J to be back in China starting from their New Year celebrations.
Vipul Shah says the diamond prices have stablised after two quarters of volatility. The recent wedding season saw a remarkable upswing in cut and polished diamond prices to the tune of 10%, indicating a promising future ahead. ''In my opinion the decision by India to voluntarily cease the import of rough diamonds for two months starting in October have played some role in this'', says Shah, who predicts robust demand of diamonds shown during thanksgiving to continue at Christmas too.
To further grow the exports, GJEPC is exploring untapped markets like the UK, Italy, France, Latin America and Cambodia. The government is also planning to sign more FTAs with market centric nations in the world which will boost exports.
Vipul Shah says as for gold jewellery, since the signing of India-UAE comprehensive economic partnership agreement (CEPA) in 2022, there's been a remarkable rise in exports of jewellery to the UAE. India’s exports of plain gold jewellery to UAE has surged by 47% for the period from April to November 2023 as compared to the same period last year. ''This agreement is anticipated to fuel further growth in exports in coming years'', he says.