Gem, jewellery exports inch close to pre-Covid levels

Gem and jewellery exports inched back to the pre-Covid level, with shipments touching $2.86 billion last month, which is marginally down, 0.78 per cent, compared to the same period in 2019.

However, in rupee terms, it is up 5 per cent at ₹20,851 crore (₹19,891 crore)

Exports of cut and polished diamond registered a growth of 18 per cent last month at $2 billion (₹14,512 crore) against $1.69 billion (₹11,660 crore) recorded in 2019.

Gold jewellery exports plunged to $570 million ($924 million) last month.

Colin Shah, Chairman, GJEPC, said revival in exports was largely led by shipments to the US on the back of virtual buyer-seller meets held by the Council.

Demand for studded jewellery products and re-stocking by importers also aided swift recovery in cut and polished diamond exports, he added.

First-quarter trend

Gems and jewellery exports were up 3 per cent in the June quarter to $9.18 billion (₹67,266 crore) against $8.92 billion (₹62,018 crore) logged during the pre-Covid June quarter of 2019.

Incidentally, the industry came to a standstill in the June quarter of last year with peak Covid restrictions in place.

Cut and polished diamond exports were up 20 per cent to $6.26 billion (₹45,741 crore).

Gold jewellery sales to overseas customers were down 40 per cent to $1.73 billion ($2.86 billion) while that of plain gold dipped 72 per cent to $624 million ($2.18 billion).

Plain gold jewellery exports, at $624.32 million in June quarter, were up compared to last year, but is lower 71 per cent compared to the June quarter of 2019.

Shah said the gold jewellery sector is facing critical domestic challenges, including short supply of gold and duty drawback rates being lower than actually paid by exporters, leading to lower margin and making products less competitive in the global market.

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Credit: Hindu Business Line | July 15, 2021