Gem and jewellery exports fell 19 per cent in August to $2.01 billion (₹16,884 crore) compared with $2.48 (₹20,525 crore) in the same period last year, largely due to lower demand amid geopolitical tensions.
Imports decreased 28 per cent to $1.45 billion (from $2.01 billion) due to reduced demand in the domestic market. However, with the onset of the festival season, the scenario is expected to take a positive turn, thereby reinstating the demand.
Cut and polished diamond exports fell by 24 per cent while imports decreased by 36 per cent. Rough diamond imports decreased by 23 per cent. Polished Lab Grown diamonds exports fell by 15 per cent last month.
Normalcy after polls
Gold jewellery exports also declined marginally by one per cent, while coloured gemstone shipments dropped by 20 per cent.
Colin Shah, MD, Kama Jewelry said with over 60 countries in the world holding elections in the days to come, trade activities could witness a slowdown for the time being due to various restrictions.
However, he said normalcy should return once the elections are over in the concerned countries, which will help in the revival of demand.