‘Demand is returning’: India’s gem and jewellery exports jump 26% to $2.2 billion in June

‘The key positive is the stabilisation of natural diamond prices, indicating that demand is returning,’ an industry expert said, as India’s gem and jewellery exports posted a robust recovery in June. Gross exports jumped 26% year-on-year to $2.2 billion, up from $1.7 billion a year earlier, despite ongoing geopolitical tensions and subdued global consumer sentiment.

The expert added that as currencies weaken globally, investors are also gravitating toward precious stones and metals — a trend reflected in the June numbers. Cut and polished diamond (CPD) exports rose 8.7% to $847 million from $779 million, while lab-grown diamond (LGD) exports jumped 52% to $101 million for the month and 14% to $296 million for the April-June quarter.

Dinesh Navadiya, chairman of the Indian Diamond Institute, echoed the optimism, saying stabilising natural diamond prices are reviving confidence across the trade and that strong growth in studded jewellery exports is benefiting the diamond cutting and polishing industry.

Gold jewellery was the biggest growth driver of all, with June exports soaring 54% to $1.087 billion. Studded gold jewellery exports surged 85% to $634 million, while plain gold jewellery exports increased 25% to $454 million. Silver and platinum jewellery also recorded strong gains during the quarter, with silver jewellery exports nearly doubling.

Despite the optimism, the broader April-June quarter remained largely flat, with overall exports steady at $6.6 billion and CPD exports dipping 4% to $2.7 billion. Rough diamond imports fell 27% in June to $700 million from $961 million, and plunged 32% to $2.1 billion for the quarter, with volumes down 15% to 228 lakh carats from 270 lakh carats — a decline industry sources expect will help balance supply and support prices for cut and polished diamonds.

Wikimedia Commons/by Theminimalcarbon