In a recent development, the gem and jewelry export sector experienced a notable setback, registering a nine percent decline in the past month. The export figures dwindled to $2.19 billion, a notable drop from the December 2022 record of $2.4 billion. The slump in exports can be attributed to weakened global demand, a consequence of the ongoing recessionary trend in the global economy.
Data released by the Gem and Jewellery Export Promotion Council on Thursday unveiled that rough diamond exports took a significant hit, plunging by 32 percent to $862 million when compared to the preceding month. Interestingly, rough diamond imports surged by 148 percent, amounting to $254 million, primarily influenced by a lower base.
Analyzing the yearly trend, the overall exports in the last three quarters of the current fiscal year witnessed a considerable decline of 21 percent, reaching $23 billion, in contrast to the previous year’s $29 billion.
Furthermore, the import of gems and jewelry also experienced a dip of 22 percent, reaching $16 billion from the previous $20 billion. Rough diamond imports specifically decreased by 24 percent, amounting to $10 billion. In contrast, the import of cut and polished diamonds exhibited a 43 percent increase, reaching $1.49 billion.
The demand for lab-grown diamonds also faced an 18 percent decline, totaling $102 million, compared to the previous $84 million. Over the span of the last nine months, exports in this category recorded a 23 percent decline, settling at $1.02 billion.
Colin Shah, Managing Director of Kama Jewelry, highlighted that the demand for the gem and jewelry sector bore the impact of upcoming elections in 60 countries, including major economies like India and the US. The prevailing geopolitical scenario, coupled with inflation, further contributed to the subdued demand dynamics in the industry. Shah expressed optimism, stating that the demand for gems and jewelry is anticipated to witness improvement from the third quarter of fiscal year 2025.
