The Gem and Jewellery Export Promotion Council (GJEPC) in its report has stated that India's gems and jewellery exports in May 2021 declined by 5 per cent to Rs 21,188 crore ($2.89 billion) compared to the same month in pre-pandemic 2019, due to the disruptions caused by the second Covid wave across the country. In 2019, the overall gem and jewellery exports in May stood at Rs 22,388 crore ($3.20 billion). India's gem and jewellery exports in May 2021 slipped into negative territory due to the severe disruption in manufacturing activity caused by the outbreak of the second Covid wave across the country. The mix of partial and complete lockdowns in different states led to limitations on workforce capacities and related manufacturing activities.
However, gems and jewellery exports grew by 4 per cent during April and May 2021 to Rs 46,414.38 crore ($6.31 billion) compared to the same months during the pre-pandemic year in 2019. India's April-May 2021 export growth was driven mainly by the Domestic Tariff Area (DTA), which witnessed a 15 per cent growth in exports compared with the 31 per cent decline in exports recorded from Special Economic Zones (SEZs). Cut and polished diamond (CPD) exports witnessed an increase of 27 per cent to Rs 31,229 crore ($4.26 billion) in April-May, 2021 compared to Rs 24,514 crore ($3.5 billion) in April-May 2019, as manufacturers kept pace with strong retail demand in key export markets like the US, China, and Europe, despite operating with limited labour and pandemic restrictions. Plain gold jewellery exports suffered from a lack of sales to tourists in major destinations such as Singapore, Malaysia, and Dubai where some pandemic-related travel restrictions are still in place.
In addition, the second Covid wave and subsequent lockdowns triggered yet another exodus of goldsmiths and artisans, who fled to their hometowns, the GJEPC said adding that as a result, Indian plain gold jewellery exports April-May 2021 dipped by 69 per cent to Rs 3,211 crore ($434.11 million) from Rs 10,404.50 crore ($1.49 billion) in April-May, 2019. By contrast, studded gold jewellery witnessed a growth of 49 per cent in April-May 2021 to Rs 3,985.46 crore ($730.04 million) from Rs 1,108.61 crore ($516.81 million) in April May, 2019, owing to the reviving retail demand in key export markets like the USA, Hong Kong among others. The clear shift in consumer preferences towards silver jewellery post-pandemic led to India's silver jewellery exports more than tripling in the April-May 2021, rising 259.50 per cent to Rs 3,985.46 crore ($539.09 million) from Rs 1,108.61 crore ($158.79 million) in April-May 2019.