India’s jewellers increase focus on silver jewellery
With world’s richer consuming neighbourhoods set to report record economic contraction this year due to the pandemic-led lockdowns & declining overseas demand for polished natural diamonds, India’s gem and jewellery exporters are turning to the exports of silver jewellery and lab grown diamonds.
There was a contraction of 22% in the exports of polished natural stones, while sales of lab-grown diamonds overseas swelled to 88% and demand for silver jewellery more than doubled in FY20. Data compiled by the Gem & Jewellery Export Promotion Council disclosed that silver jewellery exports stood at US$ 1.7 billion million in FY20, compared with US$ 832 million in FY19. Meanwhile, the exports of lab grown diamonds stood at US$ 413.39 million as compared with US$ 220.27 million in FY19.
“There is demand for laser finished products and good orders from the European market. The lab grown diamond is expanding and increasing demand is observed in Domestic Tariff Area (DTA) as well as in Special Economic Zone (SEZ),” said Colin Shah, chairman, GJEPC. However, Shah ruled out the possibility of natural diamonds losing their sheen anytime soon, thanks to their aspirational value.
Shah also stated that the India-China stand off is yet to hit the export of diamonds to China. “We are keeping our fingers crossed as China and Hong Kong are major export markets for cut and polished diamonds. The tension between the two countries should not escalate further.”