[ad_1]
“Currently, the sector is cautiously optimistic (in terms of the sector’s outlook). We are seeing rising interest rates (in the global market), and the ongoing Russia-Ukraine war. We don’t know what will be the outlook of the Chinese market, with the new five-year tenure of the leadership in that country. All these (factors) need to be looked at,” Shah told Business Standard in an interview.
According to Shah, during the first half of the current financial year, the gems and jewellery sector has grown and has outperformed as compared to other sectors. The growth was close to 17 per cent in September at $3.76 billion and 6.31 per cent during April-September at $20.58. The export target for FY23 is $45.6 billion.
“The second half of the year will be a bit challenging. However, If certain needs of the industry are looked after by the government, we will try to achieve our target.
The only concern is because of the lockdown, the China market is disturbed and that was a huge market,” Shah said, adding that with China opening up things should start getting better.
During April-September, barring cut and polished diamonds, all product categories witnessed a positive growth at–polished lab-grown diamonds (60.5 per cent), coloured gemstones (45.63 per cent), plain gold jewellery (19.53 per cent), studded gold jewellery (16.27 per cent), and silver jewellery (34.27 per cent). Cut polished diamonds saw a contraction of -1.27 per cent.
One of the prime reasons for the healthy growth of plain gold jewellery exports is due to the free trade agreement that was signed with the United Arab Emirates (UAE) and implemented in May.
DIVERSIFICATION OF EXPORT MARKET
“Things should gradually settle with China opening up. A lot of dependency on any one market, such as the US is not healthy. As far as Europe is concerned, it is in very bad shape currently, with rising gas prices and recession looming. We would always prefer the China market opening up and some diversification in the far-east regions. This can help the industry,” he said.
Exports of Gems and Jewellery |
|||
Months |
FY22 |
FY23 |
Growth(%) |
April |
3.38 |
3.48 |
2.96 |
May |
2.98 |
3.24 |
8.72 |
June |
2.84 |
3.55 |
25 |
July |
3.48 |
3.29 |
-5.46 |
August |
3.45 |
3.34 |
-3.19 |
September |
3.25 |
3.64 |
12 |
Apr-Sep |
19.38 |
20.54 |
5.99 |
Source: GJEPC
.
[ad_2]
Source link