Dip in gold jewellery exports hits small-scale units

Ahmedabad: Dwindling gold jewellery exports have dented the business of several small-scale jewellery manufacturing units in Gujarat, as their order volumes declined. According to gems and jewellery export promotion council (GJEPC), gold jewellery export stood at $3,552 million for the period between April 2020 and January 2021, 64% down against the same period in the previous financial year.

“Majority of jewellery exports take place from Mumbai, Chennai, and Kolkata. However, several exporters outsource manufacturing to units in Gujarat. With declining export orders, the business of small manufacturing units will be impacted,” said Ashish Pethe, GJEPC president.

Estimates suggest that Gujarat also accounts for upto 10% of jewellery exports in India. Ahmedabad is home to at least 30-40 wholesale jewellery manufacturing units, majority of which are dependent on both domestic as well as export orders, according to Manek Chowk Choksi Mahajan (MCCM). Rajkot is yet another cluster where several such jewellery manufacturing units are located.

MCCM president Chinubhai Choksi said, “Several small- and medium-scale manufacturing units are outsourced jewellery-making work. At a time when domestic demand has failed to revive, such units are facing serious concerns in attracting revenues.”

“The demand is still not upbeat. The only cushion the industry is getting at present is the ongoing wedding season, but people come with fixed budgets to make purchases. Also, several of the customers are exchanging old gold to buy new jewellery for occasions. The demand is buoyant but not up to the mark.”

Image Courtesy: Financial express

Courtesy: TOI