The Gem & Jewellery Export Promotion Council (GJEPC) has reported a 12 per cent increase in gold jewellery exports during the current fiscal year, despite a 10 per cent decline in diamond exports.
The council remains optimistic about a potential recovery in diamond demand, particularly in the United States, while also outlining plans to position Singur, West Bengal, as a global hub for fashion and costume jewellery.
Mixed Performance in Jewellery Exports
Gold jewellery exports have shown resilience this fiscal year, aided by rising gold prices, according to GJEPC officials. However, exports of cut and polished diamonds dropped by 18.8 per cent to USD 8,980.2 million between April and November of FY25 compared to the same period last year.
China’s weaker demand for diamonds has been a significant factor in the decline. However, a five per cent increase in US demand during the Thanksgiving season offered some relief in December.
Vipul Shah, GJEPC Chairman, expressed optimism about a turnaround in diamond exports. He expects growth of 10-15 per cent in the upcoming fiscal year and highlighted potential shifts in global trade dynamics. “We believe the worst is behind us, with a 10 per cent decline in the first nine months of this fiscal. With the new government in the US under Donald Trump, we are optimistic about a revival in demand,” he said.
Pre-Budget Proposals and Promotion Initiatives
The GJEPC has submitted pre-budget proposals calling for an alignment of duty drawbacks on platinum, an emerging precious metal with growing potential in the jewellery market.
To support the industry, the council has allocated Rs 150 crore for global promotion campaigns to boost generic diamond demand. Additionally, lab-grown diamonds are being promoted to address growing interest from price-conscious consumers, reflecting a shift in market trends.
Singur as a Future Jewellery Hub
The GJEPC is focusing on Singur, West Bengal, with plans to develop it into a hub for fashion and costume jewellery exports. Vipul Shah highlighted Singur’s skilled workforce of approximately 100,000 artisans, or “karigars,” of which 20 per cent are women. The region’s traditional craftsmanship and location near major transport networks make it well-positioned for export activities.
“Kolkata’s renowned craftsmanship forms a foundation of artisanal heritage, providing a rich legacy of artistic skills that Singur’s jewellery manufacturers can leverage,” Shah stated.
Singur’s infrastructure, including access to raw materials and new gypsum manufacturing units, is expected to support the region’s growth. Shah noted that reduced US procurement from China creates an opportunity for Indian manufacturers to expand their presence in international markets.
Implications for Jewellers
The GJEPC’s updates indicate a cautiously optimistic outlook for jewellers as they navigate current market challenges. While diamond exports are still under pressure, the growth in gold jewellery exports and lab-grown diamond promotion offers new opportunities.
Singur’s development as a jewellery hub provides a strategic chance for jewellers to diversify their portfolios into the fashion and costume jewellery segments, capitalising on skilled craftsmanship and shifting global trade patterns.
