What Triggered The 11.49% Fall of India’s Gems & Jewellery Exports In October?

According to data from the Gem and Jewellery Export Promotion Council (GJEPC), India's total exports of gems and jewellery fell by 11.49 per cent to Rs 22,873.19 crore (USD 2,748.01 million) in October. According to the report, gross exports in October 2022 were recorded at Rs 25,843.84 crore (USD 3,134.85 million). In the previous month, exports of Cut and Polished Diamonds (CPD) dropped by 32.70% to Rs 10,495.06 crore (USD 1,260.91 million) from Rs 15,594.49 crore (USD 1,891.2 million) at the same time last year.

In October 2023, the gross export of polished lab-grown diamonds (LGD) was Rs 1,135.16 crore ($ 136.38 million), a 23.01 per cent fall from Rs 1,474.38 crore ($ 178.73 million) in the same month the previous year. However, compared to the same period last year, when the total export of gold jewellery was Rs 6,457.48 crore ($ 784.11 million), it climbed by 33.48 per cent to Rs 8,619.38 crore ($ 1,035.54 million) in October 2023.

Hardik Mangla, Founder of Jewelry brand Demi Luxe said, "The 11.49% drop in India's gems and jewellery exports during October 2023 underscores a multifaceted challenge for the sector. Beyond immediate concerns, potential factors contributing to this decline could involve variations in consumer preferences, evolving fashion trends, or increased competition from other global players.

Adapting to these dynamic market forces is crucial for the sustained growth of India's gems and jewellery industry. Moreover, issues related to the supply chain, including logistics, raw material availability, or production disruptions, may have played a role in this setback. A comprehensive analysis of these factors is essential to pinpoint areas requiring strategic intervention. Industry leaders might explore technological advancements, such as embracing digital platforms for marketing and sales, to stay connected with evolving consumer behaviour."

"International collaborations and partnerships could also play a pivotal role in expanding market reach and establishing India as a prominent player in the global gems and jewellery trade. Government support in terms of policy frameworks and incentives for innovation could further bolster the industry's resilience. The months ahead will likely require a concerted effort from both public and private sectors to navigate challenges and rejuvenate the gems and jewelry export landscape," added Hardik Mangla.

Ankit Singh Kimtee, Founder & CEO, DiamondXE said, "The decline of 11.49% in India's gems and jewellery exports in October 2023 can be attributed to the weak global demand, especially from the US and China. High interest rates and inflation coupled with the recent geopolitical tensions have contributed to the dampened demand. The supply of Russian rough diamonds has been scarce, affecting exports of Cut and Polished Diamonds and Polished Lab Grown Diamonds which fell by 32.70% and 23.01% respectively, compared to October last year."

"We are looking forward to the developments in the SEZ Act in the forthcoming session, which could boost jewellery exports in the next fiscal year. We are also excited about the India-UAE Comprehensive Economic Partnership Agreement, which will enhance our trade ties with one of the largest diamond markets in the world. We do expect the demand to pick up soon, as the Chinese market recovers and the US enters its festive season," stated Ankit Singh Kimtee.

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