Gem and jewellery export last month was down 6 per cent to $2.48 billion (₹20,713 crore) against $2.65 billion (₹21,796 crore) for the same period last year due to the economic uncertainties in the global markets.

Cut and polished diamonds export declined 15 per cent to $1.47 billion ($1.72 billion) largely due to geopolitical tensions. Rough diamond imports dipped 10 per cent to $2.39 billion ($2.64 billion), as per the Gem and Jewellery Export Promotion Council of India data.

Polished lab grown diamond export declined 14 per cent in May to $120 million ($139 million) due to volatile demand and pricing.

Better realisation

Boosted by sharp increase in prices, gold jewellery exports increased 13 per cent to $660 million ($584 million) due to higher price realisation and renewed demand for the yellow metal by consumers globally. Coloured gemstones exports fell 29 per cent to $63 million ($89 million).

Colin Shah, MD, Kama Jewelry, said the industry is going through a challenging phase for over a year with the outbreak of geo-political tensions earlier between Russia and Ukraine and then between Israel and Hamas has deeply impacted the exports.

Polls in 60 nations

Additionally, the trade may be further hampered with elections in over 60 countries and this needs a close monitoring to decide on the course of trade activities for the rest of the year, he added.

Despite the sharp fall in exports, the overall imports by the gems and jewellery sector increased to 24 per cent at $1.89 billion ($1.53 billion) due to robust demand seen in the domestic market.

Import of cut and polished diamonds in May jumped to 61 per cent to $138 million ($86 million).

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