India’s gems and jewellery exports decline by 10.29% in Dec 2024 amid economic uncertainty

India’s gems and jewellery exports in December 2024 declined by 10.29 per cent compared to the same month last year, according to figures released by the Gem & Jewellery Export Promotion Council (GJEPC). Exports in December stood at USD 1967.98 million, compared to USD 2193.82 million in December 2023 due to the economic uncertainty looming in the market for which buyers are leaning more towards the yellow metal as a haven for investments rather than splurging on lifestyle. Having said that, given the ceasefire and hopes of a truce between Israel and Hamas, exports will gradually start to pick up pace.The overall imports of gems & jewellery for December 2024 stood at USD 1526.95 million showing a decline of 27.23% compared to USD 2098.19 million for the same period last year. This is a routine trend of a temporary decline in sales that stays for about a quarter after festive and wedding sales. However, there is a shift in buying behaviour among buyers as the millennials and GenZ are increasingly preferring lightweight jewellery in precious metals for daily wear. This trend will see a major uptick in 2025, thereby boosting domestic demand.

The overall gross export of Cut & Polished diamonds declined by 10.36% in December 2024, standing at USD 773.1 million compared to USD 862.48 million for the corresponding period last year. This dip is an inverted effect of poor demand in the international market which is in turn hampering the business in the diamond cutting and polishing capital of the world. Another reason can be attributed to the tough competition coming in from Lab Grown Diamonds, which is increasingly gaining popularity amongst consumers.

Gross imports of rough diamonds stood at USD 7882.58 million (Rs 66066.49 crores) in December 2024, showing a decline of 22.1% when compared with the imports for the same period last year which stood at USD 10118.93 million (Rs. 83603.48 crores). This is due to the dampened demand in the international markets owing to the global economic uncertainty caused by geopolitical tensions. To provide cushioning to their investments, consumers are turning towards safe-haven assets like gold which is a highly returns yielding asset compared to diamonds, which is a non-yielding asset.

The total gross export of Polished Lab Grown Diamonds during December 2024 stood at USD 78.93 million (Rs. 670.77 crores) showing a decline of 5.48% as compared to USD 83.51 million (Rs. 695.48 crores) for the previous year. This is due to the effect of fluctuations in the prices of natural diamonds that has created a reaction on this product category resulting in muted demand in the global markets.

The total gross export of gold jewellery in December 2024 stood at USD 868.03 million, showing a decline of 3.56% compared to USD 900.11million for the same period last year. Since the wedding and holiday season is on the verge of getting over, the demand has been coming down.The gross export of coloured gemstones during December 2024 stood at USD 304.13 million witnessing a decline of 11.5% compared to USD 343.64 million for the same period last year.Commenting on the export performance, Colin Shah, managing director of Kama Jewelry said, “The geo-political tension has been acting as a major deterrent for the trade activities. However, the ceasefire deal between Israel and Hamas comes as a major relief for the entire globe, which will pave the path for both countries to come to a truce. Hence, we hope to see a gradual rebound in trade activities in the upcoming months.”