India reported a 16.75 per cent increase in gold jewellery exports during its fiscal year 2023 amid global economic uncertainties, revealed the Gem & Jewellery Export Promotion Council (GJEPC).

Latest GJEPC data showed gold jewellery exports had reached US$11.23 billion from April 2023 to March 2024 from US$9.63 billion in the previous year, with the plain gold jewellery category seeing robust growth of 61.72 per cent to US$6.79 billion.

UAE was a significant plain gold jewellery exports destination, recording an increase of 107.2 per cent to US$4.53 billion. UAE and Bahrain accounted for over 85 per cent of India’s plain gold jewellery exports, revealed GJEPC. 

Gold jewellery shipments initially dipped 10.47 per cent from April 2023 to September 2023 but recovered significantly in the latter part of the fiscal year, the council added.

Vipul Shah, chairman of GJEPC, attributed strong plain gold jewellery exports to bilateral trade agreements signed by India. He noted, “The implementation of the India-UAE CEPA (closer economic partnership agreement) could not have come at a better time, especially when the industry faced various challenges with economic downturns in major export markets and escalating geopolitical concerns, all of which led to a decline in demand.” 

Meanwhile, India’s gemstone and jewellery exports were down 14.45 per cent year on year. Cut and polished diamond exports slid 28.58 per cent to US$15.97 billion while those of coloured gemstones rose 14 per cent. Silver jewellery shipments dropped 44.97 per cent but platinum jewellery saw a 449.16 per cent growth in exports. 

Shah noted, “The previous year was challenging for exports, owing to high interest costs, inflation and a slackening of market demand in the US and lower growth in China after Covid. The Ukraine war and uncertainties in rough imports from Russia also worsened the scenario.”

GJEPC and the Indian government are polishing upcoming trade agreements with GCC (Gulf Cooperation Council) countries, Canada, the UK and the European Union, which Shah said could positively impact India’s gem and jewellery exports moving forward.