The gem and jewellery export sector saw a decline in November, with total exports dropping 13% year-on-year to $1.99 billion from $2.28 billion in the same period last year, according to the Gems and Jewellery Export Promotion Council (GJEPC). The downturn was attributed to weak global demand caused by economic uncertainty.
Key Segment Trends: Diamonds and Lab-Grown Diamonds
Exports of cut and polished diamonds fell sharply, plummeting 40% to $666 million from $1.12 billion the previous year. Similarly, lab-grown diamond exports dropped 42% to $63 million from $109 million. While the lab-grown diamond market is still developing, the sector is expected to recover as awareness and interest grow over time.
Gold Jewellery Exports Surge
Amid the overall decline, gold jewellery exports increased 41% to $1.13 billion from $806 million. This rise was linked to a drop in gold prices, making gold a preferred investment during economic uncertainty.
Decline in Coloured Gemstones Exports
Exports of coloured gemstones also experienced a downturn, decreasing 12% to $285 million from $323 million in November 2022. This decline aligns with broader challenges in the luxury goods market amid tighter consumer spending.
Imports See a Mixed Picture
On the import front, total gem and jewellery imports rose 35% to $1.36 billion, reflecting increased stocking by jewellers ahead of India’s wedding season. However, imports of cut and polished diamonds dropped 80% to $54 million, and rough diamond imports fell 21% to $6.96 billion. These figures indicate reduced demand for high-value diamonds as economic uncertainty affects consumer spending.
Industry Commentary
Colin Shah, Managing Director of Kama Jewelry, commented on the challenges facing the industry:
“The prolonged geopolitical tension continues to remain a matter of concern for the domestic gems and jewellery industry, which has led to a slowdown in exports after seeing an uptick in the previous month. Any critical developments on the geopolitical front may continue to disrupt trade activities in the times ahead. However, with the holiday season around the corner, we expect the demand to stay upbeat driven by heightened buying sentiment.”
Implications for Jewellers
For professional jewellers, these trends highlight the importance of responding to changing consumer preferences and economic conditions. While gold jewellery has shown resilience, the decline in diamond demand suggests a more cautious market. As the lab-grown diamond segment develops, it may offer jewellers opportunities to expand their product offerings.
