Economy

Gem, jewellery exports plunge 82% as Covid takes heavy toll

Suresh P Iyengar Mumbai | Updated on June 17, 2020 Published on June 17, 2020

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Ravaged by the Covid pandemic and subsequent lockdowns, gem and jewellery export plunged 82 per cent in May to $570 million against $3.27 billion logged in the same period last year while in rupee terms it fell 81 per cent to ₹4,315 crore (₹22,796 crore).

Shipments in the first two months of the fiscal were down 84 per cent to $572 million ($3.51 billion) and it dropped 82 per cent domestic currency to ₹4,329 crore (₹24,468 crore), casting gloom on the industry’s prospects which is still waiting for a relief package.

Colin Shah, Chairman, Gem and Jewellery Export Promotion Council, said exports were affected due to the lockdown of economic activity globally. However, demand in China, Europe and Australia is recovering while large parts of the West Asia and the US are still in turmoil due to Covid.

“Industry is recovering slowly following all the safety norms announced by the government. The industry will recover faster if enough credit facility is made available and quicker progress is made on the ease of doing business,” he added.

Cut and polish exports dipped 79 per cent in May to $389 million ($1.86 billion) while gold jewellery exports dropped even sharply by 92 per cent to $84 million ($1.02 billion).

In rupee terms, cut and polished diamond exports fell 77 per cent to ₹2,943 crore (₹13,012 crore) and that of gold jewellery was down 91 per cent to ₹634 crore (₹7,103 crore) in May.

So far, so bad this fiscal

Cut and polished diamond exports in the first two months of this fiscal declined 79 per cent to $389 million ($1.87 billion) and in rupee it registered a fall of 77 per cent to ₹2,943 crore (₹13,033 crore).

Silver jewellery exports dropped marginally by three per cent to $86 million ($88 million) while that of coloured gemstone fell 93 per cent to $4 million ($59 million).

Imports plummet

Import of gems and jewellery in April and May declined 88 per cent to $216 million ($1.86 billion) while rough diamond imports plunged 94 per cent to $81 million ($1.34 billion).

Cut and polished diamond imports dropped 23 per cent to $108 million ($139 million).

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Published on June 17, 2020
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