February polished diamond exports rise 32% despite Russia-Ukraine war

Surat : The Russia-Ukraine conflict does not appear to have dimmed the radiance of Surat diamonds. The gross export of cut and polished diamonds increased by 32% in February to Rs 19,582 crore, up from Rs 14,841 crore in the same month in 2022.

The rapid recovery of the Chinese and Middle Eastern markets boosted India’s gem and jewellery exports in February. Overall gem and jewellery exports increased by 24% in February 2023 to 28832.86 crores, up from 23326.80 crores in the same period last year.

Vipul Shah, Chairman of the GJEPC, commented on the February export surge, saying, “GJEPC is excited about the strong pace of demand observed by Indian exhibitors at the recent Hong Kong show, which revealed the untapped demand in the Chinese market.”

“In February 2023, India experienced a noteworthy 32% surge in cut and polished diamond exports, which can be partly attributed to the strong demand from China and the Lunar New Year festivities. Furthermore, thanks to the forward-thinking CEPA agreement signed with the UAE, plain gold jewellery exports increased by 45%, indicating that the Middle East market is rebounding strongly after a slight dip. Furthermore, studded gold jewellery, which is primarily exported to the United States, is showing a promising 20% increase.

“The Hong Kong market had experienced a negative trend in the last few months, but now we’re seeing signs of a rebound,” Shah continued, adding that a resurgence in Chinese consumption could potentially lead to even greater improvements. The average savings rate in China is around 40%, equating to trillions of dollars that could potentially be spent in a “revenge buying” frenzy, similar to what we’ve seen in other world markets following prolonged lockdown periods. As a result, we expect significant growth in the diamond and diamond jewellery industries in the coming six months.”