Chairman Vipul Shah of the Gem & Jewellery Export Promotion Council (GJEPC) disclosed a nearly 15% decline in gems and jewellery exports for the fiscal year 2023-24. This downward trend mirrors observations from 2023 and was emphasized during the India International Jewellery Show 2024.

Shah attributed the challenging conditions primarily to the sluggish market in China post-Covid-19, a significant consumer in this sector, alongside a slowdown in the US due to high-interest rates. Diamond shipments, constituting half of the overall exports, experienced a notable 27-28% decline during the fiscal year ending on March 31.

Richa Singh, managing director for India and the Middle East at the Natural Diamond Council, highlighted the substantial drop in consumption from China and the slowdown in the US, though India and the Gulf Cooperation Council countries remained positive.

According to GJEPC data, gross exports of gems and jewellery between April 2023 and February 2024 amounted to $29.6 billion, marking a 15.31% decrease from the same period in the previous fiscal year. Imports during the 11-month period ending February 2024 also witnessed a 15.14% year-on-year decline.

Shah pointed out the impact of G7 sanctions on Russia, a major supplier, which could affect India's imports in the future. Despite this, GJEPC remains optimistic about consumption recovery, eyeing potential interest rate cuts in 2024 and exploring new markets like Latin America, Cambodia, and Vietnam.

GJEPC is actively collaborating with the government to secure favorable policies in upcoming trade pacts, including free trade agreements with the Gulf Cooperation Council, Canada, United Kingdom, and the European Union. Sabyasachi Ray, GJEPC Executive Director, elaborated on recommended import duty rates by the Union Ministry of Commerce & Industry for these regions.

Furthermore, Karnataka is anticipated to contribute $200 million to India's overall gems and jewellery exports for the recently concluded financial year.