India’s gem and jewelry exports increased 26.5% year on year to $2.21 billion in June, signifying a remarkable turnaround after a poor start to the year, according to data issued yesterday by the Gem & Jewellery Export Promotion Council (GJEPC).
The increase was primarily driven by strong demand for gold jewelry, cut and polished diamonds, and lab-grown diamonds. Total gold jewelry exports increased by 54.5% to $1.09 billion, with studded gold jewelry exports up 85.35% and plain gold jewelry shipments up 25.3%. Cut and polished diamond exports gained 8.7% to $846.7 million, while polished lab-grown diamond exports jumped 52.25% to $101.35 million.
Despite the good result in June, exports remained practically flat during the second quarter. GJEPC reported that total gem and jewelry exports for the quarter increased by 0.04% year on year to $6.6 billion.
From April to June, cut and polished diamond exports plummeted 4.13%, while plain gold jewelry exports fell 23.3%. Those declines were offset by a 20.1% increase in studded gold jewelry exports, a 97.8% increase in silver jewelry exports, a 27.7% increase in platinum jewelry exports, and a 14.9% increase in polished lab-grown diamonds. Colored gemstone shipments fell 15% in the quarter.
Kirit Bhansali, chairman of GJEPC, said the June results demonstrated the industry’s resiliency in the face of changing global trade conditions. He mentioned ongoing demand from important export markets, initiatives to diversify export destinations, and the potential benefits of new trade agreements, such as the India-United Kingdom Comprehensive Economic and Trade Agreement, as possible drivers of future growth.
“The sharp recovery in June is an encouraging sign for the months ahead,” Bhansali said.
According to GJEPC, reduced gold prices contributed to the June recovery. According to the group, international gold prices fell by over 10.3% from the previous month, lowering raw material costs and increasing the competitiveness of Indian jewelry producers.
