Gem and Jewellery news—The India gem and jewellery exports business, which witnessed a decline of 4.35% in dollar terms during April-October, according to reports, may post a recovery thanks to improved macroeconomic conditions in the US, industry insiders said.
Since the United States accounts for half of the India Gem and Jewellery Exports, the industry is rising due to increasing economic growth, employment rate and private consumption in this market.
The Middle East, another major market where movement of gems and jewellery had slowed down after the UAE imposed a 5% value-added tax, may now see a recovery.
“If we take into consideration the consumption pattern of the US in calendar 2018, then it can be seen that the India jewellery and gem export demand has gone up to 80.3 tonnes in the first three quarters as against 76.7 tonnes in the corresponding period of 2017; growth of 5%,” Colin Shah, vice chairman of the Gems & Jewellery Export Promotion Council told the ecomonictimes.indiatimes.com.
Followed by great consumer demand for jewellery, imports of cut and polished diamonds in the US in the first three quarters of 2018 have reportedly jumped more than 14% to $18.55 billion from $16.26 billion the previous year. Imports from India expanded at a faster clip of 17.6%.
China, too, has made good a stride in the US market, giving tough competition to India. US imports of cut and polished diamonds from China has gone up 19.9% in the first three quarters this year.
Chinese exports increased 2.91% in the period. Though Indian gem and jewellery exporters are bullish about demand going up in the coming months in the US, a sharp decline in the prices of small, low-value diamonds will exert pressure on the manufacturing sector. Prices of this category of diamonds have dropped by up to 20% this year due to an oversupply and weak demand.
