Gem and jewellery export dipped 10 per cent last month to $1.97 billion against $2.19 billion on back of geopolitical tension and global economic slowdown.
In rupee terms, it plunged to ₹16,719 crore (₹18,270 crore), as per the Gems and Jewellery Export Promotion Council data.
With the looming economic uncertainty, buyers preferred to bet on yellow metal as safe haven for investments rather than splurging on lifestyle.
The overall gems and jewellery imports were down 27 per cent to $1.53 billion ($2.10 billion).
Cut and polished diamonds exports fell 10 per cent last month to $773 million ($862 million) due to poor demand in the international market. This apart, the competition from cheap lab grown diamonds has intensified and gaining popularity among consumers.
Colin Shah, MD, Kama Jewelry said the geo-political tension has been acting as a major deterrent for the trade activities.
Ceasefire deal
However, he said the ceasefire deal between Israel and Hamas comes as a major relief for the entire globe and revives hopes for a gradual rebound in trade activities in the upcoming months.
Polished lab grown diamond export fell 5 per cent to $79 million ($83 million) as the fluctuations in natural diamond prices weakened demand.
Gold jewellery shipments declined 4 per cent to $868 million ($900 million) as the buying for wedding and holiday season slowed down.
Coloured gemstones exports also dipped 11 per cent to $304 million ($344 million).
Rough diamond imports was down 22 per cent at $7.88 billion ($10.12 billion) due to global economic uncertainty caused by the geo-political tensions. Imports of cut and polished diamonds saw a decline of 64 per ent to $91 million ($254 million).
