Opportunities for Indian G&J Sector in the Middle East

Dubai :  The Middle East sees emerging opportunities for Indian jewellery exporters with countries like Saudi Arabia and Kuwait showing rising demand for studded gold jewellery, according to the Gem & Jewellery Export Promotion Council (GJEPC).

The recent data has revealed a positive trend showcasing substantial growth in regions beyond the traditional strongholds for India’s gems and jewellery, like the US and China, GJEPC has claimed.

In a statement released here on Tuesday, GJEPC said there are emerging opportunities in the Middle East, with countries like Saudi Arabia (+26.05 per cent) and Kuwait (+87.99 per cent) showing a rising demand for studded gold jewellery.

“Saudi Arabia, Kuwait, Bahrain, and Malaysia, in particular, have witnessed increasing exports due to the growing number of buyers from these countries attending the three India International Jewellery Show (IIJS) events — Premiere, Signature and Tritiya — in recent times.

“The product profile of Indian jewellery is well-suited to the specific requirements of these markets, contributing to the growth in exports,” the statement said.

These markets are relatively under-explored and represent a significant opportunity for Indian exporters, with exports showing significant growth in the first quarter of FY 2024-25.

“As we venture into new territories, the labour-intensive nature of studded jewellery production has played a crucial role in meeting the sophisticated demands of a discerning global clientele,” Vipul Shah, Chairman, GJEPC, said in the statement.  

According to him, this not only enhances India’s export capabilities but also elevates the reputation of Indian jewellery craftsmanship in international markets.

GJEPC said it has been working closely with the Inidan government on foreign trade policy, like the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA), and has been actively working to penetrate new markets through targeted initiatives.

The exports of plain gold jewellery have seen an impressive year-on-year increase from April to July 2024 in new, promising markets such as Malaysia (+35.77 per cent), Australia (+75.86 per cent), Canada (+30.65 per cent), France (+102.89 per cent) and Oman (+207.46 per cent).

Konal Doshi, Partner at Modern Impex, an award-winning exporter of plain gold jewellery with presence in new markets such as Malaysia, Australia, Canada, France and Oman, said, “In the Middle East, too, we are seeing a significant increase in direct purchases from India, compared to the previous preference for Dubai due to its easier business environment.”  

“However, with the India-UAE CEPA, Indian goods are now more cost-effective as they can be imported duty-free in their country,” he said, adding that the recent move of the Indian government to reduce import duty on gold by 9 per cent has made India’s products even more competitive.  

“Although we still export on basis of international pricing, our cost of manufacturing is linked to manufacturing loss incurred in domestic prices. The recent duty cut has straight away reduced this loss by 9 per cent, making Indian jewellery manufacturers and exporters highly competitive on the international stage,” he added.

A major jewellery exporter to the Middle East market, Anil Sankhwal, Managing Partner, J.H. Jewellers, New Delhi, and Convener of the Studded Jewellery Panel, GJEPC, said the Saudi Arabia market has only recently opened up for direct supply.  

“Previously, jewellery retailers there were sourcing India-made jewellery via Dubai, which acts as a transit point from where jewellery percolates to other Middle East countries,” Sankhwal said.

GJEPC said that a positive aspect of the Middle East markets is that lab-grown diamonds have not taken hold there, which has led to a steady rise in natural diamond jewellery exports to the region.