India’s gem and jewellery exports in May 2021 slipped into damaging territory due to the extreme disruption in manufacturing exercise induced by the outbreak of the second Covid wave throughout the nation, the GJEPC mentioned in a press release.
The mixture of partial and full lockdowns in several states led to limitations on workforce capacities and associated manufacturing actions, it added.
However, gems and jewellery exports grew by 4 per cent throughout April and May 2021 to Rs 46,414.38 crore ($6.31 billion) in contrast to the identical months through the pre-pandemic 12 months in 2019.
India’s April-May 2021 export development was pushed primarily by the Domestic Tariff Area (DTA), which witnessed a 15 per cent development in exports in contrast with the 31 per cent decline in exports recorded from Special Economic Zones (SEZs), it added.
“The revival of exports has happened due to the opening of international markets, resurgent demand and strong unstinted support from the government on various issues. Some of the announcements include the reduction in import duties on various rough gem and jewellery that is gold bars, silver bars, palladium, gold and silver findings among others, the revamped Gold Monetisation Scheme and extension of Interest Equalisation Scheme (IES) for Pre and Post shipment Rupee Export Credit for three months,” GJEPC Chairman Colin Shah mentioned in a press release.
Cut and polished diamond (CPD) exports witnessed a rise of 27 per cent to Rs 31,229 crore ($4.26 billion) in April-May, 2021 in contrast to Rs 24,514 crore ($3.5 billion) in April-May 2019, as producers saved tempo with sturdy retail demand in key export markets just like the US, China, and Europe, regardless of working with restricted labour and pandemic restrictions.
Plain gold jewellery exports suffered from an absence of gross sales to vacationers in main locations comparable to Singapore, Malaysia, and Dubai the place some pandemic-related journey restrictions are nonetheless in place.
In addition, the second Covid wave and subsequent lockdowns triggered one more exodus of goldsmiths and artisans, who fled to their hometowns, the GJEPC mentioned including that because of this, Indian plain gold jewellery exports April-May 2021 dipped by 69 per cent to Rs 3,211 crore ($434.11 million) from Rs 10,404.50 crore ($1.49 billion) in April-May, 2019.
By distinction, studded gold jewellery witnessed a development of 49 per cent in April-May 2021 to Rs 3,985.46 crore ($730.04 million) from Rs 1,108.61 crore ($516.81 million) in April – May, 2019, owing to the reviving retail demand in key export markets just like the USA, Hong Kong amongst others.
The clear shift in shopper preferences in direction of silver jewellery post-pandemic led to India‘s silver jewellery exports greater than tripling within the April-May 2021, rising 259.50 per cent to Rs 3,985.46 crore ($539.09 million) from Rs 1,108.61 crore ($158.79 million) in April-May 2019.
A drop in export orders and non-availability of tough colored gems from main key sourcing companions like Brazil and Africa due to the restriction of actions amid Covid-19 led to a 31 per cent decline in Indian colored gemstone exports throughout April-May 2021 to Rs 280.22 crore ($37.90 million) as in opposition to Rs 425.51 crore ($60.96 million) in April-May, 2019.
“We are hopeful that with the support provided by the government and GJEPC’s continued efforts by way of organising various trade shows and resolving day-to-day challenges of trade members, exports would bounce back in the coming months. Further, GJEPC is organising one of its key trade shows in August in Dubai, which would enhance morale of the Indian manufactures and traders and boost their export business,” Shah added.