India's Plain Gold Jewellery Exports Surge By 61.72% In FY 2023-24, With UAE Market Being Key Contributor

India's Plain Gold Jewellery Exports Surge By 61.72% In FY 2023-24, With UAE Market Being Key Contributor

Australia also witnessed a growth of 37% in plain gold jewellery exports attributing its growth to the India-Australia ECTA.

Melvyn ThomasUpdated: Monday, April 22, 2024, 09:00 PM IST
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Surat: For the FY 2023-24, exports of Plain Gold Jewellery surged by an impressive 61.72% to US$ 6792.24 million as compared to US$ 4199.96 million in FY 2022-23.

The UAE emerged as a significant market for plain gold jewellery exports from India, experiencing remarkable growth of 107.2% to reach USD 4,528.66 million in FY 2023-24, compared to USD 2,185.67 million in the previous year. Markets of UAE & Bahrain accounted for over 85% of India’s plain gold jewellery exports

Australia also witnessed a growth of 37% in plain gold jewellery exports attributing its growth to the India-Australia ECTA.

Speaking about  the increase in plain gold jewellery exports Vipul Shah, Chairman , GJEPC, said, “The increase in plain gold jewellery exports may be attributed to the pragmatic foreign trade agreements by the Govt. The implementation of India-UAE CEPA couldn't have come at a better time, especially when the industry faced various challenges with economic downturns in major export markets and escalating geopolitical concerns, all of which led to the decline in demand .”

Gross export of total Gold Jewellery (both Plain & Studded) for the FY 2023-24 grew 16.75% to US$ 11230.18 million over the comparative figure of US$ 9618.80 million for previous year.

Vipul Shah added, “GJEPC has been actively working with the Government to implement favourable policies in the forthcoming trade agreements, notably those with GCC, Canada, UK, and EU. I am confident that this proactive engagement will have a positive impact on the exports of gem and jewellery to these nations in the coming months."

Gross Exports Gold And Jewellry

Gross Exports Gold And Jewellry | PIB

Analysis of Declines, Resilience In Gems & Jewelry In FY 2023-24

The overall gross exports of Gems & Jewellery in FY 2023-24 declined 14.45% to US$ 32285.85 million compared to US$ 37737.05 million in the preceding period.

“The point to be noted here is the decline in gross gem and jewellery exports, which stood at 25.04% in the first half of the financial year, narrowed to just 1.60% in the second half, showcasing the industry's resilience and ability to bounce back even in challenging times.” said Shah.

Vipul Shah further said, “The year was a challenging year for exports, owing to the high interest costs, inflation and slackening of market demand in  the USA and lower growth in  China after Covid hit the gem & jewellery industry hard in the first half of the year. Also, the Ukraine war and uncertainty on import of rough diamonds from Russia worsened the scenario.”

“With the objective to tap and penetrate new markets, GJEPC made concerted efforts to explore new markets through delegations to Vietnam, Cambodia etc and now a delegation to Latin American countries is planned in May to give fillip to exports.”

Diamond Industry's Strategy Amid Decreased Exports

Cut & Polished diamond exports in FY 2023-24 decreased by 27.58% to US$ 15967.02 million compared to US$ 22047.72 million in the previous year.

“The diamond industry’s decision to voluntarily halt natural rough diamond imports from October 15th to December 15th, 2023, helped address demand-supply imbalances and resulted in a positive impact on the prices of polished diamonds as we entered the Q4 of the financial year.” Shah added. 

“Despite experiencing sluggish demand for cut and polished diamonds from key export markets such as the USA, Hong Kong, and UAE, they still accounted for significant exports: USD 5,598.81 million, USD 4,360.30 million, and USD 1,714.39 million respectively. “⁠GJEPC is discussing with Global Diamond miners to increase investments in enhancing generic promotion of diamonds and diamond jewellery in the US, China, Middle East including India.” Vipul Shah added.

Anticipated Growth in US Exports, Shifts In Silver, Coloured Gemstones And Platinum Gold Jewellery

The largest jewellery fair of the USA is at the end May and we are hopeful that this fair will mark the turnaround of US exports. It is expected that by September 2024 the diamond and diamond jewellery exports will witness robust growth.

Gross export of Silver Jewellery for the FY 2023-24 declined 44.97% to US$ 1618.97 million over the comparative figure of US$ 2942.20 million for previous year.

Gross export of Coloured Gemstones for the FY 2023-24 grew 14% to US$ 478.71 million over the comparative figure of US$ 420.13 million for previous year.

In FY 2023-24, Platinum Gold Jewellery exports have shown a very robust growth of 449.16% to US$ 163.48 million over the comparative figure of US$ 29.77 million for previous year.

Concerns Arise As Polished Lab Grown Diamond Exports Dip

Gross export of Polished Lab Grown Diamonds for the FY 2023-24 declined 16.54% to US$ 1402.44 million over the comparative figure of US$ 1680.29 million for previous year.

However,  the industry and the sector is concerned with the ongoing conflict in the Middle East that may impact the overall exports in the first quarter of FY 2024-25.

As always, GJEPC is ensuring that exporters stay connected with international buyers by organizing Buyer-Seller Meets and participating in international shows. This year, GJEPC is participating in a total of 15 international shows across different parts of the world, providing maximum exposure to our exporters and helping to boost exports.

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