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Informist, Friday, Sep 20, 2024

 

NEW DELHI – India's exports of gems and jewellery dropped for the ninth consecutive month in August as slowing demand in China and high interest rates in the US weighed on shipments. Net exports of gems and jewellery last month fell 17.7% on year to $1.70 bln, while imports dropped 28.2% to $1.45 bln, according to data from the Gem and Jewellery Export Promotion Council. 

 

India's net exports of gems and jewellery in Apr-Aug fell 9.1% on year to $8.74 bln and gross exports fell 11.4% on year to $10.81 bln. Imports fell 6.9% to $8.42 bln during the same period.

 

China, one of the top consumers of gold and jewellery, has been struggling as several financial crises have weighed on the country's economic growth over the last few months, depleting demand for major commodities such as gold and crude oil. 

 

India exported 1.341 mln carats of cut and polished diamonds in August, lower than 1.713 mln carats a year ago. Exports of cut and polished diamonds during the first six months of the financial year started April were 6.950 mln carats, significantly lower than 7.987 mln carats in the corresponding period last year.

 

Imports of rough diamonds in August fell to 5.559 mln carats from 12.023 mln carats a year ago. Imports of rough diamonds in Apr-Aug slipped to 43.232 mln carats from 55.053 mln carats in the corresponding period a year ago.

Exports of silver jewellery tumbled to just $4.53 mln in August compared with $14.09 mln last year. Shipments to other countries during Apr-Aug were just $27.07 mln against $47.90 mln in the same period a year ago. 

 

India imported gold bars worth $239.79 mln in August, down from $253.48 mln a year ago, the data showed. Also, India imported gold bars worth $1.04 bln in Apr-Aug, up 26.1% from the previous year.

 

Gold jewellery imports in August rose to $59.84 mln from $32.96 mln in the year-ago period. Jewellery imports during the six months ended August rose to $694.46 mln compared with just $279.26 mln in the year-ago period.

 

India's exports may get some sort of support as the US Federal Open Market Committee on Wednesday cut interest rates for the first time in more than four and half years by 50 basis points. Lower interest rates increase liquidity in the economy and also make borrowing cheaper, which culminates into more demand for commodities.  

 

The following table details India's exports and imports of gems and jewellery in August and Apr-Aug, in dollar terms, and the percentage change since the year-ago period, as detailed by the Gem & Jewellery Export Promotion Council:

 

	Aug	Yr-on-Yr Change	Apr-Aug	Yr-on-Yr Change
EXPORTS	(mln $)	(%)	(mln $)	(%)
Cut, polished diamonds	1,036.63	(-) 23.80	5,618.61	(-) 20.06
Gold jewellery	687.69	(-) 1.15	3,650.50	7.42
Coloured gemstones	41.96	(-) 0.73	156.41	(-) 19.91
Silver jewellery	84.64	(-) 29.02	373.09	(-)16.51
Total*	1,702.35	(-) 17.77	8,737.93	(-) 9.06
IMPORTS
Rough diamonds	672.38	(-) 48.96	4,978.04	(-) 22.58
Cut, polished diamonds	112.59	(-) 35.55	502.60	(-) 19.10
Gold bars	239.79	(-) 5.40	1,040.31	26.10
Gold jewellery	59.84	81.56	694.46	148.68
Total*	1,448.79	(-)28.19	8,416.65	(-)6.94

 

 

* Total may not tally as some minor items have not been included, or some consignments may have been returned.

 

End

US$1 = 83.57 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Sayantan Sarkar

Edited by Tanima Banerjee

 

 

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