Over 35 lakh weddings in coming months promise strong season for jewellery retailers: Vipul Shah, GJEPC
Vipul Shah, Chairman, Gem & Jewellery Exports Promotion Council (GJEPC).
In an interaction with ET Digital, Shah says he is upbeat about the prospects of the gems & jewellery sector as the industry expects the ongoing festive month to give a sharp surge in demand.
The industry also sees several strong indications to support this expectation of high demand in this festive season.
Edited excerpts:
Economic Times (ET): How do you see the financial year 2023-24 turning out for the gems & jewellery sector amid the ongoing global slowdown, US-China tensions, Russia-Ukraine war, and Israel-Hamas conflict?
Vipul Shah (VS): The year is proving to be challenging for the gems and jewellery sector.
Reduced demand in key export markets has had a significant impact on the industry. The US market is grappling with various macroeconomic issues, including rising inflation and high interest rates, which have created headwinds for the sector.
Meanwhile, expectations of a post-Covid consumption rebound in China have not materialised due to the country’s own economic challenges, leading to a decline in jewellery demand.
From April to September, there has been a notable 25.76% decrease in the gross exports of gems & jewellery, which now stands at $15,231.27 million, in contrast to $20,515.47 million in the year-ago period. Looking at 2023-24, we anticipate a decline of 20% to 25% in gems and jewellery exports.
ET: How have exports of polished diamonds fared so far in FY24?
VS: The overall gross exports of cut & polished diamonds from April to September 2023 witnessed a decline of 28.76% to $8,702.23 million as compared to $1,2215.47 million for the year-ago period.
ET: How do you think e-commerce can help India’s gems & jewellery sector
