October Sees Growth in India’s Gem and Jewellery Exports
After several months of decline, India’s diamond exports showed growth in October 2024, driven by increasing demand for both natural and lab-grown diamonds.
The Gem & Jewellery Export Promotion Council (GJEPC) reported that cut and polished diamond exports for the month totalled USD 1,403.59 million (Rs. 11,795.83 crores), marking an 11.32% increase in dollar terms and a 12.39% rise in rupee terms compared to October 2023.
Cut and Polished Diamonds Lead Recovery
Cut and polished diamonds accounted for the largest share of gem and jewellery exports, Shri Vipul Shah, Chairman of the GJEPC, stated:
“This is a welcome relief for our industry, as we’ve experienced export growth of 9.18% in October. Notably, the export of cut and polished grew 11.32% compared to October 2023. We are optimistic that this trend will continue, especially with the approaching holiday season in the West, which will likely drive further demand for gems and jewellery.”
Polished Lab-Grown Diamonds See Modest Growth
Exports of polished lab-grown diamonds also contributed to October’s performance, albeit with more subdued growth. Exports totalled USD 138.12 million (Rs. 1,160.70 crores), a year-on-year increase of 1.27% in dollar terms and 2.25% in rupee terms.
April to October 2024: Cumulative Diamond Export Performance
Despite October’s recovery, the broader export figures for April to October 2024 highlight challenges in the diamond sector.
- Cut and Polished Diamonds: Exports during this period fell by 16.56% in dollar terms to USD 8,313.86 million (Rs. 69,558.49 crores) compared to the same period in 2023.
- Polished Lab-Grown Diamonds: Exports declined by 7.9% in dollar terms, totalling USD 766.59 million (Rs. 6,414.23 crores).
These declines reflect ongoing global economic pressures, including softer consumer demand and volatility in key markets.
Industry Implications
The October 2024 data points to renewed international demand for diamonds, a key driver of India’s gem and jewellery sector. Growth in cut and polished diamond exports is particularly promising, with demand expected to increase further during the Western holiday season.
Shri Vipul Shah also highlighted the potential for improved geopolitical conditions to benefit trade, noting:
“With President Donald Trump’s election, we are optimistic about his promise to stabilise the geopolitical landscape and strengthen the US economy, which we believe will support a revival in trade, business, and supply chains, ultimately boosting global demand for gems and jewellery.”
Looking ahead, efforts to expand into new markets and strengthen existing trade relationships will be critical to sustaining momentum in diamond exports. The recovery seen in October provides optimism but also underscores the need for continued adaptability in a challenging global environment.