The exports of India's gems and jewels has declined by a whopping 22 percent and stands at $2.6 billion as of April 2018. The reason behind the slump of export is the slowdown of demand in major markets which includes UAE.
The exports of gems and jewelry during April 2017 recorded at $3.31 billion as per the report from the Gem and Jewellery Export Promotion Council (GJEPC) of India.
The value of gold has eased in the international market amidst the strong dollar and rising U.S. Treasury yields. The prices of gold stood at $1,287.70 per ounce down by 0.5% in the international market.
India has emerged as a country of the fastest-growing gold exporter since 2012. The country's share of exports stood at $4.3 billion (up by 1.3%) during 2016.
The major export destinations for gold include Hong Kong, the US, and the UAE. They account for more than 80 percent of the country's total exporter of gems and jewelry.
The gems and jewelry attribute to closely 7 percent of India's GDP and overall 15 percent to the merchandise exports.
The negative growth in the export of silver jewelry, gold medallions, and coins apart from the rise in the return of consignments led to the drop in terms of outbound shipments during the month of April 2018.
As per the report, the shipment of silver jewelry declined by 95.5 percent and stood at $34.19 million. Gold medallions and coins export contracted by around 87.6 percent and gold jewelry shipments improved by 49 percent to reach $913 million during April 2018.
In April 2018, the shipments of cut and polished diamonds rose by 14 percent and consignments worth $545.3 million were returned as against $533 million during April 2017.
China is one of the biggest competitor of India in terms of gems and jewelry exports.
India's gems and jewelry exports during 2017-18, dipped by 8 percent to about $32.72 billion.