NEW DELHI: Even as India’s gems and jewellery exports fell by 7.75% to $2.46 billion in December, industry analysts said that the downward trend is temporary and the exports will be back in the positive territory within a month or two.
“Overall, our gems and jewellery exports are down by 15-16%. We are expecting global recovery. Our major export market is the USA, and its economy has shown signs of recovery. We are expecting some revival within a month or two,” said Bachhraj Bamalwa, Director, All India Gems and jewellery Trade Federation (GJF).
Gems and jewellery exports from India in December 2014 was valued at $2.67 billion. India, on an average, exports gem and jewellery worth around $36 billion annually, about 13% of its overall merchandise export.
During April–December 2015-16, the accumulative exports of the precious metal contracted by 14.2% to $23.3 billion as against $27.15 billion during the corresponding period of 2014-15, according to the Commerce Ministry data.
Bamalwa said that the global slowdown that led to a demand slump in the overseas market has hit the country’s gems and jewellery exports, and the domestic industry has been performing well despite all the global issues.
“It’s due to the global slowdown. There is no robust demand, but there is not less of demand also in the domestic market, and it has been performing okay. As soon as we see some revival in the global economy, even at a snail’s pace, our exports as well as domestic industry will pick up well,” Bamalwa told The Dollar Business.
On the one hand, where there is a sign of optimism among the country’s gems and jewellery exporters due to a recovering American economy, which has led to several small business units mushrooming again in the Indian market, countries such as China, Vietnam, Belgium, Israel and Dubai have emerged as major diamond cutting and polishing hubs, thus giving tough competition to Indian exporters.
But India has an edge over these soon-to-be major competitors in terms of their established market. Recently, the domestic industry has also asked the government to come up with some sort of subsidies to help Indian exporters maintain their competitiveness.
