UAE drives a surge in plain gold jewelry exports, up 61.72% to $6792.24 million in FY24

India’s Plain Gold Jewellery Exports Surge in FY24, UAE Market Emerges Strong: GJEPC Report

In the fiscal year 2023-24, India’s jewellery export landscape underwent significant shifts, marked notably by a monumental surge in plain gold jewellery exports, which surged by a remarkable 61.72% to a total of $6792.24 million, as reported by The Gem & Jewellery Export Promotion Council (GJEPC). This surge, representing a substantial leap from the previous fiscal year’s figure of $4199.96 million, underscored the buoyancy and dynamism of India’s jewellery export sector.

A pivotal driver of this surge was the United Arab Emirates (UAE), emerging as a powerhouse market for India’s plain gold jewellery exports. UAE’s import of Indian plain gold jewellery experienced an astonishing growth rate of 107.2%, soaring to $4528.66 million in FY 2023-24, compared to $2185.67 million in the preceding year. The confluence of UAE and Bahrain accounted for over 85% of India’s plain gold jewellery exports, highlighting the strategic significance of the Middle Eastern region in India’s jewellery trade dynamics.

The diversification of market engagements was evident in Australia’s commendable growth of 37% in plain gold jewellery exports, partly attributed to the India-Australia Economic Cooperation and Trade Agreement (ECTA), showcasing India’s efforts to tap into varied market landscapes and capitalize on bilateral trade agreements.

Vipul Shah, Chairman of GJEPC, attributed this surge in exports to pragmatic foreign trade agreements, notably emphasizing the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Shah stressed the proactive collaboration between industry stakeholders and the government in implementing conducive policies, extending beyond the UAE to forthcoming trade agreements with pivotal markets such as the GCC, Canada, UK, and EU, reflecting a strategic approach towards market diversification and expansion.

While the gross export of total gold jewellery (both plain & studded) surged by 16.75% to $11230.18 million, the overall gross exports of Gems & Jewellery in FY24 experienced a decline of 14.45% to $32285.85 million, signaling nuanced fluctuations within the broader sector.

Shah acknowledged the industry’s resilience amidst multifaceted challenges, ranging from high interest costs, inflationary pressures, geopolitical uncertainties, to the reverberations of events like the Ukraine conflict. GJEPC’s concerted efforts to explore new markets, including upcoming delegations to Latin American countries, underscored a proactive stance towards stimulating exports and fostering sustainable growth trajectories.

Despite a decline of 27.58% in cut & polished diamond exports, initiatives such as voluntary halting of natural rough diamond imports and strategic dialogues with global diamond miners aimed to fortify the industry’s resilience and enhance its competitive positioning. Anticipations of a turnaround in exports, buoyed by upcoming events like the jewellery fair in the USA, reflected the industry’s strategic optimism amidst evolving market dynamics.

In FY24, while silver jewellery exports declined by 44.97%, exports of coloured gemstones registered a robust growth of 14%, while platinum gold jewellery exports surged by an impressive 449.16%. However, polished lab-grown diamond exports witnessed a decline of 16.54%, indicating nuanced shifts in product preferences and market demands.

Amidst ongoing geopolitical uncertainties, particularly in the Middle East, the industry remained vigilant, cognizant of potential impacts on exports in the first quarter of FY 2024-25. Strategic planning, resilience, and adaptive strategies were underscored as imperative to navigate through the complexities of an ever-evolving global trade landscape.