India’s robust gems and jewellery exports in the half of the financial year 2022-23 have helped in maintaining growth for the April-October period, despite a sharp dip in exports in the month of October.
The decline in exports in October or November is a seasonal trend consistent with previous years as manufacturing activities are either limited or units are closed because of the Diwali season, according to The Gem and Jewellery Export Promotion Council (GJEPC) – one of several export promotion councils.
“Traditionally, a spike in exports is seen once again post the Diwali holiday period.” During April-October 2022, the overall gross exports of gems and jewellery witnessed a growth of 7.90 per cent to Rs 188,183.89 crore (1.21 per cent in dollar terms to USD 23,814.0 million) as compared to Rs 174,406.57 crore (USD 4041.60 million) for the same period last year.
Coming to October 2022, the exports saw a decline of 14.64 per cent to Rs 25,843.84 crore (declined 22.44 per cent in dollar terms to USD 3,134.85 million) as compared to Rs 30,274.64 crore (USD 4,041.60 million) for the same period last year, the export promotion council GJEPC said in a statement.
“We had witnessed the usual pre-Diwali buzz as factories in India rushed to complete export orders in time for Thanksgiving and Christmas. The temporary closure of gems and jewellery units, and absence of workers during Diwali usually results in a decline in exports post-Diwali,” said Vipul Shah, Chairman of GJEPC, in the statement.
Shah believes the upcoming holiday season in the West and the Chinese New Year will give a boost to the exports in November and December and is confident that the industry is on course to achieve the export target of USD 45.7 billion for the year 2022-23.
“The positive impact of the India-UAE CEPA was offset by gold supply hurdles which impacted exporters. The Council has sensitised the government regarding this issue and they are working on resolving the same,” Shah added.(ANI)
