Israel-Hamas Ceasefire Expected to Boost Gems and Jewellery Exports: GJEPC
The ceasefire agreement between Israel and Hamas is expected to help revive gems and jewellery exports in the coming months, according to the Gems and Jewellery Export Promotion Council (GJEPC).
New Delhi: The ceasefire agreement between Israel and Hamas is expected to help revive gems and jewellery exports in the coming months, according to the Gems and Jewellery Export Promotion Council (GJEPC). The council expressed optimism about a gradual recovery in the sector following the ceasefire.
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Decline in December Exports Due to Economic Uncertainty
The GJEPC’s data for December showed that overall gross exports of gems and jewellery stood at $1.97 billion (Rs 16,719.46 crore), a decline compared to the same month in the previous year. The decrease was attributed to economic uncertainty and geopolitical conditions, with buyers opting for gold as a safer investment rather than spending on lifestyle items.
However, the GJEPC believes that with the ceasefire between Israel and Hamas, exports will start to gradually recover in the coming months.
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Decline in Imports and Changing Buying Behaviours
The overall imports of gems and jewellery in December amounted to $1.53 billion (Rs 12,992.3 crore), reflecting a 27.23% decrease from the previous year. Despite this decline, there is a noticeable shift in consumer preferences, particularly among millennials and Gen Z, who are increasingly leaning towards lightweight jewellery in precious metals for daily wear. This trend is expected to significantly boost domestic demand in 2025.
Geo-Political Tensions and Hopes for Trade Recovery
Colin Shah, Managing Director of Kama Jewelry, commented on the ongoing geopolitical tensions, stating that they have been a significant barrier to trade activities. He noted, “The ceasefire deal between Israel and Hamas comes as a major relief for the entire globe, which will pave the path for both the countries to come to a truce. Hence, we hope to see gradual rebound in trade activities in the upcoming months.”
Diamond and Gold Jewellery Exports See Declines
The report also highlighted a significant drop in the gross imports of cut and polished diamonds, which fell by 64.1%, with imports totaling $91.26 million compared to $254.18 million during the same period last year.
Meanwhile, the total gross export of gold jewellery in December 2024 stood at $868.03 million. As the wedding and holiday season winds down, the demand for gold jewellery has started to taper off.
