India’s gem and jewelry exports up 9% to Rs. 46,414.38 CR in April-May 2021 compared to April-May 2019
(PRESS RELEASE) MUMBAI – In the first two months of fiscal 2021-22 (April-May 2021) total gross exports of gemstones and jewelry increased 4% to $ 6.31 billion (and 9% in rupee to Rs. 46,414.38 Cr). compared to $ 6.10 billion (Rs. 42,571 cr) for the same pre-pandemic 2019 period.
Colin Shah, Chairman of GJEPC, said: “The revitalization of exports is due to the opening of international markets, renewed demand and the strong support of the Government of India on various issues. Some of the industry-friendly announcements include lowering import duties on various raw gem and jewelry items, viz. Gold bars, silver bars, palladium, gold and silver finds, etc., the revised gold monetization scheme and the extension of the interest adjustment system (IES) for rupee export credits before and after shipping for three months. “
Colin Shah added, “We hope that with government support and the continued efforts of GJEPC in organizing various trade fairs and addressing the daily challenges of trade members, we hope that exports will pick up again in the coming months. In addition, GJEPC is organizing one of its most important trade fairs in Dubai in August 2021, which will further increase the work ethic of Indian manufacturers and dealers and boost their export business. “
India’s export growth from April to May 2021 was mainly driven by the Domestic Tariff Area (DTA), which posted export growth of 15% compared to a 31% decline in exports from special economic zones (SEZ).
India’s total gross exports of gemstones and jewelry declined 10% to $ 2.89 billion in May 2021 (down 5% in rupees to Rs. 21188 Cr) compared to $ 3.20 billion (Rs. 22388 Cr ) in May 2019.
India’s gem and jewelry exports slipped into negative territory in May 2021 due to the severe production disruption caused by the outbreak of the second wave of Covid across the country. The mixture of partial and full lockdowns in various states led to restrictions in personnel capacities and the associated manufacturing activities.
Cut and Polished Diamond (CPD) exports grew 21% to $ 4.26 billion from April to May 2021 (27% in rupees to Rs. 31,229 cr) compared to US $ 3.5 billion Dollars (24514 Cr) in April-May 2019 as manufacturers kept pace with strong retail demand in key export markets such as the US, China and Europe despite limited labor and pandemic restrictions.
India’s total jewelry exports (including bare and ornate gold jewelry) declined 42% to $ 1.16 billion from April to May 2021 (39% in rupee terms to 8596 Cr) back to 2.00 billion US dollars (14012 Cr .). ) in April-May 2019.
All-gold jewelry exports from India suffered from a lack of sales to tourists in key destinations such as Singapore, Malaysia and Dubai, where some pandemic travel restrictions still apply. In addition, the second wave of Covid and the subsequent lockdowns triggered another exodus of goldsmiths and artisans who fled to their hometowns. As a result, Indian gold jewelry exports fell 71% to $ 434.11 million from April to May 2021 (decreased 69% in rupee to 3211 Cr) from $ 1.49 billion (Rs. 10,404.50 in Cr) April-May 2019
In contrast, riveted gold jewelry grew 41% to $ 730.04 million in April-May 2021 (49% in rupee to Rs. 3,985.46 million) from $ 516.81 million Dollars (1108.61 cr) April through May. 2019 due to increasing retail demand in major export markets such as the USA, Hong Kong, etc.
The clear shift in consumer preferences towards silver jewelry after the pandemic resulted in India’s silver jewelry exports more than tripling in the period from April to May 2021, increasing by 239% to USD 539.09 million (259.50% to 3985.46 Cr.) increased from USD 158.79 million (Rs. 1108.61 Cr) in April-May 2019.
A drop in export orders and the unavailability of rough colored gemstones from key sourcing partners such as Brazil and Africa due to the restriction on activities amid Covid-19 resulted in a 38% drop in Indian colored gemstone exports to the US from April to May 2021, US $ 37.90 million Dollars (down 31% in rupees to Rs. 280.22 Cr) versus $ 60.96 million (Rs. 425.51 Cr) in April-May 2019.