Rising demand for Indian gems and jewellery in the Middle East, reports GJEPC 

GJEPC collaborates with the Indian government on trade policies aimed at opening new markets, including the India-UAE CEPA and the India-Australia Economic Cooperation and Trade Agreement (ECTA) 

Mumbai: Indian jewellery exporters are witnessing a surge in demand in the Middle East, particularly in Saudi Arabia and Kuwait, according to the Gem & Jewellery Export Promotion Council (GJEPC). Recent data indicates significant growth in these markets, driven by increased buyer attendance at Indian jewellery exhibitions and favourable trade agreements such as the India-UAE Comprehensive Economic Partnership Agreement (CEPA). 

GJEPC’s latest statement highlights a notable rise in demand for studded gold jewellery, with exports to Saudi Arabia increasing by 26.05% and to Kuwait by an impressive 87.99%. This growth is part of a broader trend, as Indian jewellery finds new opportunities beyond its traditional markets in the US and China. 

The Council pointed out that countries such as Saudi Arabia, Kuwait, Bahrain, and Malaysia have seen heightened exports, thanks to a growing number of buyers attending key events such as the India International Jewellery Show (IIJS). “The product profile of Indian jewellery aligns well with the specific preferences of these markets, driving export growth,” the statement noted. 

Vipul Shah, Chairman of GJEPC, emphasised that the labour-intensive production of studded jewellery has been crucial in catering to the sophisticated tastes of a discerning global clientele. This not only bolsters India’s export capabilities but also enhances the international reputation of Indian jewellery craftsmanship. 

The GJEPC has been collaborating with the Indian government on trade policies aimed at opening new markets, including the India-UAE CEPA and the India-Australia Economic Cooperation and Trade Agreement (ECTA). Exports of plain gold jewellery have seen remarkable growth in various new markets from April to July 2024, including Malaysia (up 35.77%), Australia (up 75.86%), Canada (up 30.65%), France (up 102.89%), and Oman (up 207.46%). 

Konal Doshi, Partner at Modern Impex, noted a significant increase in direct purchases from India in the Middle East, as businesses move away from traditional sourcing via Dubai due to the India-UAE CEPA. This agreement allows Indian goods to be imported duty-free, making them more competitive. A recent reduction of 9% in import duties on gold further enhances this competitiveness. 

Anil Sankhwal, Managing Partner at J.H. Jewellers and Convener of the Studded Jewellery Panel at GJEPC, remarked that the Saudi market has recently opened up for direct supply, which was previously reliant on Dubai as a transit point. He also highlighted that the Middle East’s resistance to lab-grown diamonds has led to a steady increase in exports of natural diamond jewellery to the region. 

As Indian exporters explore these emerging markets, the GJEPC remains optimistic about the potential for further growth and expansion in the Middle East. 

Retail Jeweller India News