Surat Diamond Industry Loses Sheen as Exports Decline

SURAT, GUJARAT : The Surat diamond industry, renowned globally for its craftsmanship, has faced a significant setback with a 15.54% decline in the export of cut and polished diamonds, amounting to US$ 2627.09 million (Rs. 21906.44 crores). Despite this decline, other segments of India’s gems and jewellery sector, such as Gold Jewellery (Plain & Studded) and Silver Jewellery, have shown remarkable growth, underscoring the industry’s resilience and adaptability amidst global economic fluctuations.

According to the latest export performance data for April to May 2024, the overall gross exports of gems and jewellery from India totaled US$ 4691.58 million (Rs. 39123.07 crores). While this reflects a slight decline of 5.94% in dollar terms (-4.56% in rupee terms), the sector’s ability to maintain substantial figures highlights its stability and adaptability.

Vipul Shah, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), commented on the performance, stating, “India’s gems and jewellery sector has shown remarkable resilience and adaptability despite global headwinds. The growth witnessed in categories such as Gold Jewellery and Silver Jewellery underscores the enduring appeal of Indian craftsmanship and design. As we navigate through the evolving landscape, we remain committed to driving innovation and excellence to ensure sustained growth for the industry.”

The provisional gross export of Total Gold Jewellery surged by 15.4% to US$ 1420.550 million (17.15% to Rs. 11846.93 crores), compared to US$ 1231.01 million (Rs. 10112.61 crores) in the same period the previous year. Within this category, Plain Gold Jewellery showed exceptional growth of 30.66% to US$ 653.71 million (32.66% to Rs. 5451.68 crores), indicating a preference for timeless designs and purity. Studded Gold Jewellery also saw a growth of 4.94% to US$ 766.84 million (6.53% to Rs. 6395.25 crores), signaling sustained interest in intricate and embellished pieces.

Silver Jewellery emerged as another bright spot, with a notable growth of 22.47% to US$ 178.8 million (24.3% to Rs. 1491.01 crores), showcasing its versatility and affordability in the global market. Additionally, the Platinum Jewellery segment exhibited growing consumer preference, with exceptional growth of 72.94% to US$ 25.48 million (75.35% to Rs. 212.48 crores).

However, not all segments performed well. Coloured Gemstones exports declined by 29.02% to US$ 63.2 million (-27.99% to Rs. 527.2 crores) compared to US$ 89.04 million (Rs. 732.12 crores) the previous year. Similarly, the export of Polished Lab Grown Diamonds also fell by 15.5% to US$ 204.17 million (-14.32% to Rs. 1702.55 crores), from US$ 241.62 million (Rs. 1987.1 crores) in the same period last year.