Exports of plain gold jewellery from India to Dubai fell 24% in April-November

Exports of plain gold jewellery from India to Dubai fell 24% in April-November compared to the pre-Covid-19 period as the pandemic took the sheen off the biggest overseas market for local traders. Dubai’s jewellery wholesalers said they reduced purchases from India because tourists were not coming to the country amid the pandemic. Dubai Gold Souk is otherwise a major attraction for tourists and they visit it to buy gold jewellery. Dubai is also a major hub from where gold jewellery is exported to other markets. Gold jewellery from Mumbai and Kolkata is the most in demand among the tourists and nations to which Dubai exports.

“Tourist flow has come down due to Covid which is why the offtake has come down. However, we are hopeful that as the pace of booster dose picks up, tourist arrivals will improve in the country,” said Ramesh Bhogilal Vora, managing director, Bafleh Jewellers, a Dubai-based importer of gold jewellery from India.

Overall gold jewellery exports in April-November fell 23.82% to Rs 45,542.22 crore, as compared to Rs 59,783.40 crore in April-November 2019. Gold jewellery exports in November fell 33.83% to Rs 5,286.23 crore from Rs 7,988.70 crore in November 2019.

Overall gems and jewellery exports fell 3,72% in November to Rs 17,784.92 crore, compared to Rs 18,471.31 crore in November 2019. The decline was expected due to the break in manufacturing activity during Diwali.

However, overall exports of gems and jewellery grew 9.21% in the April-November period to Rs 19,3157.93 crore, compared to the corresponding period of 2019. The major export markets were the United States (38.33%), Hong Kong (24.46%), UAE (13.87%), Belgium (4.10%) and Israel (3.84%).

“India’s gem and jewellery export performance through 2021 has been far ahead of our expectations this time last year,” said Colin Shah, chairman, Gem & Jewellery Export Promotion Council (GJEPC). “The good news is that the world’s biggest jewellery consuming nation, the USA, has increased purchases from India this year. We expect to achieve the export target of $41.65 billion this fiscal year.”

Meanwhile, in its recommendations ahead of the Union budget for 2022-23, the GJEPC has urged the government to reduce import duty on cut and polished diamonds, gold and other precious metals, and an amendment in taxation provisions to allow the sale of rough diamonds in the special notified zones in Mumbai and Surat.

Courtesy: Economic Times