Reopening of markets in China driving exports

Surat: The gems and jewellery export figures of February 2022 suggest that there is a turnaround compared to the situation in December 2022 and that there is sparkling year ahead for the industry. Industry leaders say that the opening up of Chinese markets is driving the growth.
Experts claim that ‘revenge buying’ that was witnessed in other countries after the Covid lockdown will be seen in China as well as the markets there are reopening after almost three years of restrictions. Further, the jewellery manufacturing that largely uses cut and polished diamond (CPD) manufactured in India is also returning to its full capacity there.
According to Gem and Jewellery Export Promotion Council (GJEPC), the overall gem & jewellery exports witnessed a surge of 24% to 28,832.86 crore in February as compared to 23,326.80 crore for the same period last year. While the export growth in CPD is 32%, that in gold jewellery is 30% for February.
“In China, the average savings rate is around 40%, which translates to trillions of dollars that could potentially be spent on a ‘revenge buying’ frenzy, similar to what we have seen in other world markets after prolonged lockdown periods. As a result, we anticipate significant growth in the diamond and diamond jewellery industry over the next six months,” said Vipul Shah, chairman of GJEPC.
The growth literally means a turnaround for the gems and jewellery industry in the country since the export figures were negative in the third quarter. For April to December 2022 period, gems and jewellery export grew by 6.28% to Rs 2,27,534 crore against Rs 2,14,087 crore for the same period in 2021.
In December 2022, exports witnessed a decline of 11.25% to Rs 19,432 crore as compared to Rs 21,896 crore of December 2021. For April to December 2022 period, CPD exports witnessed a decline by 1.24% to Rs 1,32,075 crore against Rs 1,33,737.22 crore for the same period in 2021. In December 2022, the CPD exports saw a decline of 21.50% to Rs 10,472 crore compared to Rs 13,341 crore in December 2021.
“The trade is open now after restrictions for a long time and trade shows are also giving a platform to the gem and jewellery industry. After the pandemic, people have got good purchasing power,” said Vijay Mangukiya, regional chairman of GJEPC. “As the jewellery manufacturing is returning to its full capacity in China, demand for CPD is increasing. The situation is favourable for India’s gem and jewellery industry,” said Dinesh Navadiya, chairman of Indian Diamond Institute