Export of gems & jewellery continue to fall owing to trade war

The exports of gems & jewellery sector which witnessed 5.93 per cent YoY decline in the April-May 2019 period continued to face headwinds and June shipments dipped nearly 16.26 per cent. Gems & jewellery exports decreased to US$ 2.82 billion in June 2019 from US$ 3.37 billion in June 2018. On a quarterly basis, exports declined 10.38 per cent to US$ 9.18 billion in the April-June period of the current year compared to US$ 10.25 billion during the corresponding period of previous year.

The ongoing trade war tension among the world’s two biggest economies US and China resulted in a weak demand from China which is the second-largest market for India’s cut and polished diamonds. Further, these trade tension led to subdued demand for loose diamonds from China. Besides, lack of stock also affected manufacturing, impacting exports, according to Colin Shah, Vice-Chairman of Gem & Jewellery Export Promotion Council.

The gold jewellery exports in June 2019 fell nearly 15.41 per cent to US$ 913.88 million from US$ 1.08 billion in the corresponding period of last year, while during the first quarter, the same dipped 6.22 per cent to US$ 3.03 billion from US$ 3.23 billion. Cut and polished diamond exports declined 19.38 per cent to US$ 1.68 billion from US$ 2.08 billion in June, while the same dipped 17.33 per cent to US$ 5.20 billion in the June quarter from US$ 6.29 billion.