New Markets Set to Boost Gems and Jewellery Exports in 2024
New Markets Set to Boost Gems and Jewellery Exports in 2024. Get ready to sparkle brighter because the gems and jewellery export industry is anticipating a substantial boost in the year 2024. New markets like the UK, Italy, France, Latin America, and Cambodia are yet to be explored fully. Let’s not forget the potential increase in demand from prime markets such as the US, the GCC, and Europe, and the resumption of manufacturing activities after Diwali. There’re indeed signs of significant upswing, with diamond prices stabilizing and an impressive growth in jewellery exports to the UAE post the India-UAE comprehensive economic partnership agreement (CEPA) in 2022. So, sit tight because brighter days are coming for this glittering industry.
Global Standing of India in Gems and Jewellery Exports
Current ranking and market share in global exports
India currently holds an esteemed position of 5th place in global gems and jewellery exports. The country comes after Switzerland, U.K., USA, and Hong Kong and enjoys a healthy market share of 4.7% in this highly competitive sector. It is noteworthy and commendable how India has managed to carve such a significant position for itself in a market that is replete with established players.
Value of global exports in previous years
The value of global exports has been growing tremendously over the years, with last year’s revenue amounting to a whopping US$846.24 billion. This figure includes gems and jewellery from all over the globe. The sharing of such revenue by nations depends on the market share, where India, with its 4.7% market share, enjoys a hefty slice of the pie.
Exports and Imports Overview
Overall gross exports and imports in 2023
In the year 2023, the overall gross exports of gems and jewellery by India were worth $20,512.65 million. On the contrary, the gross imports stood at a lesser value of $13,550.873 million. This clearly indicates that India is a net exporter in this sector, which positively contributes to its economic growth.
Comparison to previous year’s exports and imports
When compared to the previous year, there seems to be a slight decline in the exports and imports of the gems and jewellery industry in 2023. The exports decreased by 21.86% and imports saw a decline of 23.83%. Despite the decrease, the industry is showing signs of revival, which is a positive sign for India.
Signs of revival in the gems and jewellery industry
The recovery of the gems and jewellery industry began at the tail end of 2023. The encouraging growth of 11.83% in exports in November underlines how the industry is reviving and gaining momentum after the earlier decline.
Impact of Global Challenges on Gems and Jewellery Industry
Effects of U.S. inflation
Like every other sector, the gems and jewellery industry has been subject to various global challenges. One such notable challenge was the impact of U.S. inflation on the industry. While such macroeconomic conditions do affect the imports and exports, the industry showed grit and resilience.
Impact of geo-political issues on exports
Geo-political issues, particularly those arising in Russia-Ukraine, have also cast a shadow over the exports. The geopolitical tensions have the potential to disrupt supply chains, thereby affecting the smooth functioning of the international trade.
Recovery from prime markets like US, GCC, and Europe
Despite these challenges, the Indian gems and jewellery market witnessed a recovery in demand by the last quarter of 2023. This recovery was mostly from prime markets including the US, GCC, and Europe.
Growth in Demand for Gems and Jewellery
Rise in demand in China
There has been a marked rise in demand for gems and jewellery in China, particularly starting from their New Year celebrations. With its high purchasing power, China has emerged as an important market for Indian exports.
Stabilization of diamond prices
Amidst the volatility faced by the industry, the diamond prices managed to stabilize after two quarters of instability. This has brought a sense of calm in the market as stable prices encourage trade and consumer purchase.
Robust demand for diamonds during festive seasons
The festive seasons have always seen a surge in the demand for jewellery, and the trend continued in 2023 as well. The diamond market, in particular, demonstrated a solid demand, with polished diamond prices going up to 10%. This promising trend is expected to continue in the coming year.
Exploring Untapped Markets
Emerging markets like the UK, Italy, France, Latin America and Cambodia
In an effort to tap into new markets, GJEPC is actively exploring opportunities in regions like the UK, Italy, France, Latin America and Cambodia. These places offer the promise of untapped markets that can provide a significant boost to exports. https://www.gia.edu/gia-bangkok
Potential benefits from more FTAs
Free Trade Agreements (FTAs) have the potential to catalyze international trade. The gems and jewellery industry is looking forward to more FTAs that could provide a momentum in exports.
Government plans to boost exports
The government’s role in boosting exports cannot be underestimated. To further support the industry, plans are being made to sign more FTAs with various market-centric nations around the world.
Impact of CEPA agreement on Gold Jewellery Exports
Significant rise in exports to UAE after the agreement
One of the major achievements in the sector has been the signing of the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE. Post-CEPA, a significant rise has been noticed in the exports of jewellery to the UAE, underscoring the effectiveness of such agreements.
Surge in exports of plain gold jewellery
In particular, plain gold jewellery has seen a surge in demand in the UAE. From April to November 2023, the exports of this specific type of jewellery increased exponentially by 47% comparing to the same period last year.
Future growth prospects through CEPA
The CEPA agreement holds a lot of promise for future growth in exports. This landmark agreement is expected to fuel further growth in the coming years, as it provides an encouraging environment for trade.
Performance of Gems and Jewellery Sector in 2023
Export performance in the second and third quarter
The second and third quarter of 2023 saw a slump in demand leading to a marginal decline in the overall exports for the financial year. However, there is anticipation for the situation to improve with the stabilization of the market in the second half of 2024.
Expectations for export growth in the second half of 2024
Despite the challenges, the expectations for export growth in the second half of 2024 are high. It is consoling to note that despite facing numerous challenges, the gems and jewellery industry has managed to hold its ground.
Influence of Industry Resilience on Global Challenges
Effectiveness of industry resilience against global challenges
Despite facing numerous challenges, ranging from geopolitical tensions to U.S. inflation, the gems and jewellery industry in India has shown remarkable resilience. The strong recovery in demand from prime markets in the last quarter of 2023 is a testament to this resilience.
Impact on demand in prime markets due to resilience
The resilience of the industry has been instrumental in ensuring that there is no waning demand in the prime markets. Despite global challenges, the demand in prime markets like the US, GCC, and Europe has been steady and reassuring.
Price Volatility in the Diamond Market
Price fluctuations in the diamond market
The diamond market has always been susceptible to price fluctuations. In 2023 as well, the market witnessed two quarters of volatility. However, recent trends indicate stabilization which is encouraging for the industry.
Effect of voluntary cessation of rough diamond imports on prices
The decision by India to voluntarily cease the import of rough diamonds for two months started in October has played a role in the stabilization of diamond prices in the market.
Future of India’s Gems and Jewellery Industry
Predictive trends for the industry
Looking forward, the gems and jewellery industry presents promising growth prospects. The encouraging demand during festive seasons, the remarkable resilience amid global challenges, and the gradual stabilization of diamond prices paint a positive picture for the sector. Emerging Trend: Rise of the Colored Gemstones in Bridal Jewelry
Projections for export growth in unknown markets
In terms of exports, unknown markets present huge possibilities. The exploration of untapped markets like the UK, Italy, France, Latin America, and Cambodia is projected to provide a significant boost to exports.
Predicted impact of additional FTAs on exports
Additional FTAs are expected to act as catalysts for exports. The CEPA agreement with the UAE has set a precedent about how valuable these agreements can be for bolstering exports. Similar agreements with other nations are likely to add further momentum to the export growth.
In conclusion, while the year 2023 presented a mix of accumulated challenges for the gems and jewellery industry in India, the resilience of the industry paired with strategic actions, the horizon looks encouraging. As the sector retains its global standing and continues to tap into new markets, the future for India’s gems and jewellery industry certainly looks bright and promising.
