India's Gems Exports Drop 15% in June, Gold Jewellery Rises 6%

Chennai: Gross exports of gems and jewellery were down 15 per cent in June and imports declined 16.5 per cent. However, gold jewellery registered a growth of 6 per cent.

At $1909 million, gross exports of gems and jewellery declined 14.78 per cent in June while gross imports at $1548.93 million were down 16.51 per cent. For the April-June period, exports declined 7.44 per cent, while imports recorded 2.9 per cent growth, as per the data of GJEPC.

Cut and polished diamond exports were down 26.35 per cent in June and 18.29 per cent during April-June period. During this period, rough diamond imports registered 15.39 per cent drop. Export of polished lab grown diamonds also declined 8.96 per cent in June, unlike the trend seen in the previous years.

Gold jewellery exports provided some solace in June with a growth of 6.36 per cent. Of this, plain gold jewellery exports were down by 3.38 per cent, though the shipments for the April-June period were up 17 per cent. Studded gold jewellery recorded a growth of 17.58 per cent in June.

Meanwhile, GJEPC office bearers met the commerce ministry officials seeking government support for the industry. According to them, the slowdown in demand abroad has led to significant credit issues within the industry, affecting its financial health. GJEPC also asked for a strong and aggressive promotion of diamonds worldwide, including within India, to help mitigate the current downturn.

The unavailability of gold, particularly among the micro, small and medium enterprises (MSMEs), is a pressing issue. The non-release of bonds of nominated agencies by banks is also a concern. The trade body also proposed the introduction of a tariff value and duty drawback scheme for platinum to support the industry.

Support was sought for organising a Banking Summit as a confidence-building measure for the industry along with the demand for Jewellery Park to further bolster the sector.