FY20 - March 2020 was the 12th consecutive month that did not witness any positive YoY exports growth. In FY20, gross exports of gems and jewellery fell by 10 per cent YoY to USD 35,531 mn. Key commodities such as cut and polished diamonds, rough diamonds, gold medallions and coins and coloured gemstones witnessed declining exports demand.
India is considered the world's largest centre for cutting and polishing of diamonds with most players concentrated in two cities of Gujarat namely Surat and Navasari. The CPD industry contributes nearly 53 per cent share to the overall gems and jewellery exports from India.
In March 2020, imports declined by 41 per cent YoY, which led to total imports for FY20 declining by 6 per cent YoY to USD 24,015 mn. Key commodities such as rough diamonds and rough coloured gemstones registered a fall in imports growth.
Items like gold bar, cut and polished diamonds, coloured gemstones, rough lab grown diamonds, gold and silver jewellery witnessed positive imports growth in FY20. Switzerland is the largest imports market with 26 per cent share, followed by U.A.E. (21 per cent share) and Belgium (16 per cent share).
U.A.E., Hong Kong and USA are the top three destinations for gems and jewellery exports from India, cumulatively contributing 78 per cent share. Other smaller markets include Belgium, Israel, Turkey, Thailand, Japan, Singapore, etc.