Gems and Jewellery Exports Losing Lustre on Global Constraints, Muted Demand
Janani Janarthanan –
BQPrime – Bloomberg – India –
The gems and jewellery industry faces a challenging year which is unlikely to improve unless demand conditions improve from the U.S. and European markets, coupled with the reopening of the Chinese economy. The data for April 2023—the first month of fiscal 2024—revealed a significant decline in gems and jewellery exports, reaching a value of $2.43 billion. This marked a sharp decline of 30% as compared with the previous year’s exports of $3.47 billion in the same category. Among various merchandise export commodities, the gems and jewellery sector experienced the steepest annualised drop in April, plunging to its lowest in 17 months.
According to Colin Shah, managing director at Kama Jewellery, the export basket could potentially drop by 10-15% if present market conditions persist throughout FY24.
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