India’s polished exports soar in April-May
India’s exports of cut and polished diamonds saw a double-digit increase in April to May 2021 mainly due to stable demand in the key jewellery markets of the US, China and Europe amid Covid-19.
Data from the Gem & Jewellery Export Promotion Council (GJEPC) showed polished exports were up 21 per cent to US$4.26 billion from US$3.5 billion in pre-Covid 2019 owing to manufacturers keeping pace with strong retail demand in top export markets.
Overall, gross exports of gems and jewellery in the first two months of fiscal year 2021-22 (April-May 2021) rose 4 per cent to US$6.31 billion from 2019.
Colin Shah, chairman of GJEPC, attributed these gains to the opening of international markets, improving demand and strong support from the Indian government.
Total jewellery exports (including plain and studded gold jewellery) meanwhile declined by 42 per cent to US$1.16 billion during the period in review compared to April-May 2019. Plain gold jewellery exports, which fell by 71 per cent, suffered from lacklustre tourist spending in major destinations such as Singapore, Malaysia and Dubai.
By contrast, studded gold jewellery shipments were up 41 per cent, buoyed by a rebound in retail demand in the US and Hong Kong, among other major markets.
“The clear shift in consumer preference towards silver jewellery post-pandemic has led to India’s silver jewellery exports more than tripling in the April-May 2021 period, rising by 239 per cent to US$539.09 million from 2019,” GJEPC noted.
India’s gem and jewellery exports declined by 10 per cent in May 2021 as the country dealt with a severe Covid-19 outbreak that heavily impacted manufacturing operations.