Imports of gems and jewellery decreased by 17% to $1.40 billion (₹11,739 crore) in July 2024, compared to $1.68 billion (₹13,832 crore) in the same month last year, according to data from the Gems and Jewellery Export Promotion Council (GJEPC). Meanwhile, exports of gems and jewellery fell by 23% to $1.66 billion (₹13,922 crore) from $2.17 billion (₹17,832 crore) a year earlier, largely due to escalating geopolitical tensions.
Imports of cut and polished diamonds fell by 51% to $82 million in July, as compared to $166 million for the same period of the previous year. While exports of cut and polished diamonds dropped by 23% to $908 million for the month of July against $1.17 billion for the same period of last year, primarily due to a significant reduction in trade with China, which represents 10-15% of India's diamond exports, it states.
India's diamond processing industry, the largest globally, is facing a downturn amid this declining demand. The import of rough diamonds declined by 16% to $4.3 billion for April-July 2024, down from $5.11 billion in the same period last year, due to decreased demand for high-value products.
Exports of polished lab-grown diamonds decreased by 10% to $95 million in July, against $105.49 million in previous year, which was attributed to weakened demand and falling natural diamond prices. While imports of polished lab-grown diamonds decreased to $7.9 million in July against $8.7 million in the same period of previous year, the data states.
Gold jewellery exports also saw a 12% drop to $530 million from $603 million, as compared to $603 million for the same period of last year, driven by reduced global demand as gold prices edged upwards, it adds.
Additionally, coloured gemstone exports fell to $114 million for April-July 2024, down from $153 million for the corresponding period, reflecting subdued demand. While imports of coloured gemstone increased to $46.5 million for April-July 2024, up from $42.87 million in the corresponding period of last year.
Recently, it was reported that the gem and jewellery sector sector, which accounts for approximately 10% of India’s total merchandise exports, is grappling with difficulties due to the geopolitical climate, shifts in foreign trade policies, and challenges related to sourcing rough diamonds.
