The gem and jewellery exports last month was down 13 per cent to $1.99 billion against $2.28 billion logged in the same period last year due to weak demand amid economic uncertainty.
In rupee terms, it dipped 12 per cent to ₹16,763 crore (₹19,005 crore), according the Gems and Jewellery Export Promotion Council data.
Cut and polished diamonds exports declined by 40 per cent to $666 million ($1.12 billion) due to muted demand.
Polished lab grown diamond shipment was down 42 per cent at $63 million ($109 million) due to low consumption. However, this product category is still defining its own space and audience, will ultimately see a rise in demand in the long run.
Gold jewellery export increased 41 per cent to $1.13 billion ($806 million) as gold prices dipped suddenly making it the most desirable asset class to behold in times of global economic uncertainty. Coloured gemstones export declined 12 per cent to $285 million ($323 million) last month.
Imports jump
The overall imports of gems and jewellery increased 35 per cent last month to $1.36 billion (₹11,512 crore) against $1.01 billion (₹8,418 crore) for the same period last year. Jewellers were stocking up in anticipation of busy wedding season in India.
Similarly, the overall gross imports of cut and polished diamonds decreased 80 per cent to $54 million (₹456 crore) against $265 million (₹2,210 crore) logged in same period last year.
Import of rough diamonds was down 21 per cent to $6.96 billion (₹58,223 crore) against $8.81 billion (₹72,684 crore). With the global economic uncertainty looming, the consumers have been taking a cautious step in terms of investing in diamonds, which is a non-yielding asset. However, with ongoing wedding and holiday season, there may be a rebound in demand.
Colin Shah, Managing Director, Kama Jewelry said the prolonged geopolitical tension continues to remain a matter of concern for the domestic gems and jewellery industry, which has led to a slowdown in exports after seeing an uptick in the previous month.
“Any critical developments on the geopolitical front may continue to disrupt the trade activities in the times ahead. However, with holiday season around the corner, we expect the demand to stay upbeat driven by heightened buying sentiment,” he added.
