Ceasefire Between Israel and Hamas to Boost Gems and Jewellery Exports: GJEPC
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Synopsis
The ceasefire between Israel and Hamas may lead to an increase in gems and jewellery exports, as per GJEPC. Despite a downturn in December's export figures, a shift in consumer preferences might bolster demand in the coming years.
Key Takeaways
- Ceasefire may revive gems and jewellery exports.
- December exports fell to $1967.98 million.
- Millennials prefer lightweight jewellery.
- Geo-political tensions hindered trade.
- Expect gradual recovery in trade activities.
New Delhi, Jan 17 (NationPress) The ceasefire agreement between Israel and Hamas is expected to facilitate a resurgence in the gems and jewellery export sector in the upcoming months, according to the Gems and Jewellery Export Promotion Council (GJEPC). The data from the GJEPC revealed that the total gross exports of gems and jewellery in December amounted to $1967.98 million (Rs 16,719.460 crore), which reflects a decline compared to the same month from the previous year, attributed to economic uncertainties stemming from geo-political conditions. Consequently, buyers have been increasingly favoring yellow metal as a safe investment option rather than indulging in lifestyle purchases.
However, with the recent ceasefire and the optimism surrounding a potential truce between Israel and Hamas, the council anticipates a gradual recovery in export activities. Imports of gems and jewellery for December also showed a downturn at $1526.95 million (Rs 12,992.3 crore), marking a 27.23% decrease from the same timeframe last year.
Interestingly, there is a noticeable shift in consumer preferences, particularly among millennials and Gen Z, who are increasingly opting for lightweight jewellery made from precious metals for everyday wear. This trend is expected to see significant growth by 2025, consequently enhancing domestic demand.
Colin Shah, Managing Director of Kama Jewelry, noted that the ongoing geo-political tensions have been a significant barrier to trade activities. He stated, "The recent ceasefire agreement between Israel and Hamas brings a much-needed relief to the global market, paving the way for both nations to establish peace. We anticipate witnessing a gradual recovery in trade activities in the months ahead."
Furthermore, gross imports of cut and polished diamonds plummeted by 64.1%, totaling $91.26 million compared to $254.18 million during the same period last year. The total gross export of gold jewellery in December 2024 reached $868.03 million. As the wedding and holiday season comes to a close, the demand is reportedly declining, as indicated in the report.
