Diamond exports grow 26.98% during Apr-Sept ‘21

Hit by the Covid pandemic last year, India’s Gems & jewellery exports have bounced back and gained momentum in the first half of the fiscal year. Between April and September 2021, the overall gross exports of Gems & Jewellery recorded a growth of 11% to Rs. 140412.94 crore (+5.13% in dollar terms to US$18984.49 million), as compared to Rs. 126461.93 crore (US$ 18058.52 million) between April and-September 2019.

Cut and polished diamond exports grew 26.98% to Rs. 91489.2 crore (20.24% in dollar terms to US$ 12372.04 million) during April-September 2021, as compared to Rs. 72047.99 crore (US$ 10289.10 million) during April-September 2019.

However, the export growth has not been uniform; some segments have actually shown a decline, while some have registered a growth.

Growth-recording sub-segments

During April-September 2021, cut and polished diamond exports grew 26.98% to Rs. 91489.2 crore (20.24% in dollar terms to US$ 12372.04 million), as compared to Rs. 72047.99 crore (US$ 10289.10 million) during April-September 2019.

In September alone, cut and polished diamond exports registered a growth of 1.12% to Rs. 14028.04 crore (decline of 1.97% in dollar terms to US$ 1907.3 million), as compared to Rs. 13872.63 crore (US$ 1945.68 million) in September 2019.

In April-September 2021, studded gold jewellery exports shot up 60.04% to Rs. 17761.38 crore (51.65% in dollar terms to US$ 2401.36 million), as compared to Rs. 11097.78 crore (US$ 1583.48 million) during the same period of 2019. 

Between April and September 2021, silver jewellery exports increased 153.14% to Rs. 9477.39 crore (139.96% in dollar terms to US$ 1280.23 million), as compared to Rs. 3743.93 crore (US$ 533.53 million) in April-September 2019.

Sub-sectors that exhibited decline

Coloured gemstone exports in the fiscal year-to-date declined 15.37% to Rs. 1059.95 crore (declined 19.56% in dollar terms to US$ 143.34 million), compared to Rs. 1252.45 crore (US$ 178.26 million) recorded in the corresponding period in 2019.

In September 2021, the overall gross exports of Gems & Jewellery showed a decline of 0.99% to Rs. 23259.550 crore (-4.03% in dollar terms to US$ 3162.25 million), as compared to Rs. 23491.20 crores (US$ 3294.87 million) in September 2019. During April-September 2021, gold jewellery exports declined 28.52% to Rs. 29379.36 crore (decline of 32.34% in dollar terms to US$ 3971.020 million), as compared to Rs. 41103.82 crore (US$ 5869.50 million) for the same period in 2019.

In September alone, gold jewellery exports declined 19.32% to Rs. 5656.32 crores (decline of 21.85% in dollar terms to US$ 768.96 million), as compared to Rs. 7011.07 crore (US$ 983.89 million) in September 2019.

Between April and September, 2021, plain gold jewellery exports dropped 61.28% to Rs. 11617.98 crore (declined 63.38% in dollar terms to US$ 1569.65 million), as compared to Rs. 30006.04 crore (US$ 4286.02 million) during April-September 2019. 

Government support to G&J industry

Talking about the industry, Colin Shah, Chairman, GJEPC said, “With USD 18984.49 million exports during April-September, the sector has already achieved nearly half (46%) of the USD 41.66 billion G&J exports target set by the Govt. The sentiment in the industry is incredibly positive with markets opening up and demand gradually returning to normal. GJEPC successfully concluded the International Gem & Jewellery Show (IGJS) in Dubai recently; and we have received particularly good feedback from the exhibitors and buyers. Moreover, with the festive season coming up, we are optimistic to achieve the export target by the end of the financial year.”

Being a labour-intensive industry and looking at the growth potential the sector, the Government has declared gems and jewellery sector as a focus area for export promotion. Shah added, “We have been receiving full support from the Ministry of Commerce & Industry to achieve our target of USD 75 billion in the next few years. I am thankful to Piyush Goyal, Hon’ble Minister of Commerce & Industry, who has been lending an empathetic ear to exporters in pursuit of our mission to push export growth.”

On 17th September, the Goyal visited the Surat Diamond Bourse. On 18th September, he travelled to the 37th edition of India International Jewellery Show held in Bengaluru and spent nearly three hours walking around the five expo halls and meeting manufacturers, making it the longest amount of time that any Commerce Minister of India has spent at IIJS. Less than a week later, on 23rd September, Goyal became the first ever Commerce Minister to visit SEEPZ in Mumbai, where he met with officials from GJEPC and SEEPZ along with jewellery exporters.

During his visit to SEEPZ, Goyal announced a ₹200 crore grant for upgrading the SEEPZ infrastructure and an additional ₹70 crore for developing an on-site Mega Common Facility Centre (CFC).

The space transfer policy announced on 11th October, 2021, by the Department of Commerce, Ministry of Commerce & Industry, will significantly facilitate ease of doing business in Special Economic Zones (SEZ), which account for a 30% share in India’s total gem and jewellery exports.