Gem, jewellery exports rise 3.14% to $2.30 bn in August despite weak demand

India's gem and jewellery exports experienced a modest growth of 3.14% in August, reaching $2.30 billion, despite challenges such as high gold prices and weak demand for plain gold jewellery. In rupee terms, exports grew by 12.52% year-on-year to ₹21,945.87 crore, compared to $2.23 billion (₹19,503.52 crore) a year earlier.

The export mix experienced a noticeable shift towards higher-value finished products. Studded gold jewellery exports surged by 51.22% in dollar terms, reaching $642.85 million, while cut and polished diamond exports declined by 4.93% to $924.51 million. The increase was more evident in volumes, with cut and polished diamond exports growing by 3.23% to 13.36 lakh carats in August from 12.94 lakh carats a year earlier, indicating that weaker realizations were the primary pressure point for diamond exporters.

Key GJEPC Chairman Kirit Bhansali noted that the August export performance demonstrated the resilience and adaptability of India's gem and jewellery industry. The significant rise in studded gold jewellery exports and the sharp growth in studded gold jewellery exports highlight India's growing capacity to create greater value by transforming precious materials into finished jewellery.

This development signifies a shift in India's export profile from processing and trading precious materials to finished products. However, the decline in plain gold jewellery exports, which fell by 23.90% in dollar terms and 17% in rupee terms, can be attributed to the sharp rise in gold prices, increasing input costs for exporters, and limited availability of duty-free gold.

Other value-added categories, such as platinum jewellery, polished lab-grown diamond, and coloured gemstone exports, also recorded strong growth, indicating the industry's diversification.