India's gem and jewellery exports made a strong comeback in February, recording a surge of 24 percent from Rs 23,326.80 crore in the same period last year to Rs 28,832.86 crore. Cut and polished diamonds saw a growth of 32 percent, reaching Rs 19,582.38 crore in February 2023, compared to Rs 14,841.90 crore the previous year, according to Gem & Jewellery Export Promotion Council (GJEPC) report released on Thursday, March 9.
Vipul Shah, Chairman of GJEPC, expressed enthusiasm about the increase in Indian exports in February 2023. He highlighted that Indian exhibitors at the recent Hong Kong show observed untapped demand in the Chinese market and saw signs of a rebound in the Hong Kong market.
The total gross export of gold jewellery (plain and studded) also surged 29.89 percent, reaching Rs 5,829.65 crore against Rs 4,488.30 crore in February 2022.
"GJEPC is excited about the strong pace of demand observed by Indian exhibitors at the recent Hong Kong show, which revealed the untapped demand in the Chinese market," he said.
This increase was partly due to strong demand from China and the Lunar New Year festivities. Additionally, the Comprehensive Economic Partnership Agreement (CEPA) deal signed with the UAE led to a notable 45 percent rise in plain gold jewellery exports, indicating a strong rebound in the Middle East market, he said.
Additionally, the gross export of plain gold jewellery saw a significant surge of 45.04 percent to reach Rs 2,604.14 crore, compared to Rs 1,795.51 crore in the same period last year.
Similarly, the gross export of all types of studded gold jewellery increased by 19.78 percent to Rs 3,225.51 crore versus Rs 2,692.79 crore in February 2022.
The provisional gross export of polished lab-grown diamonds grew by 18.23 percent to Rs 1,117.10 crore, whereas coloured gemstones exports ballooned116.14 percent to Rs 452.08 crore in the same period.
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However, the gross export of silver jewellery declined by 42.89 percent to Rs 1,125.60 crore, and the export of platinum jewellery dropped by 37.63 percent to Rs 8.70 crore in February 2023 compared to the corresponding period last year.
In the fiscal year-to-date period of April 2022-February 2023, the overall gross export of gems and jewellery saw a growth of 5.27 percent to reach Rs 2,78,960.56 crore, compared to the same period last year when it was Rs 2,64,994.83 crore.
The gross export of cut and polished diamonds (CPDs) experienced a decline of 0.22 percent to Rs 1,63,489.85 crore in the same period.
Studded gold jewelry, primarily exported to the US, also showed a promising improvement of around 20 percent, he added.
He anticipates even greater improvements in the diamond and diamond jewelry industry, as the average savings rate in China is around 40 percent, potentially leading to significant growth in a "revenge buying" frenzy similar to what other world markets have seen after prolonged lockdown periods.
