The gems and jewellery industry in India experienced a significant rise in exports in November, with a year-on-year growth of 20% to reach $2.5 billion. The rise was mainly fuelled by high demand for cut and polished diamonds, which registered an export of $919.74 million and an increase compared to $666.34 million of the same month the previous year. Lab-grown polished diamonds also played their role in the performance and the rise of 10.55% compared to last year.
There was also a substantial recovery of silver jewellery exports following previous supply shocks. The number of shipments increased to $197.97 million in November compared to $63.99 million last year. Supply was also eased, which, according to officials, contributed to an increase in silver exports throughout the month.
Although overall gold jewellery exports declined to $1.21 billion from the previous year's record of $1.23 billion, the studded gold jewellery exports showed a better performance. Orders for these products rose to $828.89 million in exports from $555.39 million due to a rise in job-work orders in the local market.
According to GJEPC Chairman Kirit Bhansali, the markets of Hong Kong, China, and the Middle East have improved their demand. He also pointed out that exports of job work also helped the sector recover, and silver and studded jewelry witnessed better supply chain impetus.
Although the plain gold jewellery is performing well in specific categories, plain gold jewellery still faces challenges because of the constant fluctuation in price, which has affected volumes of global orders. Exporters are also risk-averse in terms of categories whose short-term demand is stronger.
Although the numbers in November present a positive increase, the total exports from April to November remained stagnant. This was an increase of $18.86 billion compared to the $18.85 billion it had reached in the same time the previous year. The analysts have been blaming the stagnant growth on the unbalanced demand in the major markets and the global trade uncertainties.
Passenger car sales on an annual basis also recorded a fall of 8.5% in November. The players in the industry are optimistic about the future of jewellery exports. They believe that inventories have leveled and the world retail market is indicating encouraging signs of recovery. The industry is highly dependent on the developments in global consumer behavior and macroeconomic factors.