The Gem and Jewellery Export Promotion Council expects a turnaround of exports from India in 2025-26, recovering from a global slowdown in demand for diamonds in 2024 that had prompted mining majors such as Anglo American (parent of De Beers) and Alrosa to scale back production.

According to data from GJEPC, exports of gems and jewellery were down 10.12 per cent in November and 7.83 per cent in the April-November period of the ongoing fiscal in rupee terms.

Within this, the export of cut and polished diamonds was down 39.01 per cent in November and 12.66 per cent in the April-November period of the ongoing fiscal in rupee terms.

However, exports of plain gold jewellery have seen a 74.35 per cent increase in November and a 3.83 per cent increase in the April-November period, largely on account of free trade agreements.

“The main reason for this decline is disruption in supply and demand. There was an excess production while demand was shrinking. For example, in China post-Covid, demand never picked up. There were also ongoing geopolitical risks which disrupted exports to West Asia. So the only markets left were the US and a little bit in Europe, in addition to domestic sales,” Vipul Shah, chairman of GJEPC, said on Saturday.

Shah was in the city on the occasion of the silver jubilee anniversary of the eastern regional office of the Council in Calcutta.

He said that the industry, both at the global level as well as in India, has taken corrective steps.

“Post Diwali, we have controlled the production at the factories and supplies by the mining companies have also been controlled. This has given confidence as far as the inventory levels are concerned, which is currently very well balanced. In 2025, I expect at least 10-15 per cent growth from the previous year,” Shah said.

Budget proposal

GJEPC members, including Shah, had met the Union finance minister in December. While the industry
has benefitted from the reduced duties in the previous Union budget, the council has sought the inclusion of its upcoming jewellery park in Mumbai in the harmonised list of infrastructure. It has also lobbied for the introduction of duty drawback for platinum, similar to gold and silver.

Bengal focus

Shah said the GJEPC is looking to make Singur in Bengal, which has a skilled workforce of 1 lakh Bengali kaarigars, a global export hub for fashion and costume jewellery.

“Shifting global trade dynamics, with the US directing procurement from China, present a strategic opportunity for Singur’s manufacturers to meet this demand and elevate their global presence,” he said.