The Gems and Jewellery Export Promotion Council (GJEPC) stated on Friday that the recent ceasefire deal between Israel and Hamas is expected to provide a significant boost to gems and jewellery exports in the coming months.
GJEPC data revealed that overall gross exports of gems and jewellery in December stood at $1,967.98 million (₹16,719.46 crore), a decline compared to the same month in the previous year. This drop was attributed to economic uncertainty and geopolitical tensions, which prompted buyers to favour gold as a safe-haven investment rather than discretionary spending on lifestyle goods.
Despite these challenges, the Council expressed optimism that the ceasefire and the possibility of a lasting truce between Israel and Hamas would contribute to a gradual recovery in export activities.
Gross imports of gems and jewellery for December amounted to $1,526.95 million (₹12,992.3 crore), reflecting a year-on-year decrease of 27.23%.
Consumer preferences have also shifted, with millennials and Gen Z increasingly opting for lightweight jewellery made from precious metals for daily wear. This trend is anticipated to see growth in 2025, potentially pulling domestic demand, according to the report.
Colin Shah, Managing Director of Kama Jewelry, highlighted that geopolitical tensions have posed a major obstacle to trade activities. "However, the ceasefire deal between Israel and Hamas is a major relief globally, paving the way for a truce. We anticipate a gradual rebound in trade activities over the coming months," he stated.
In December, gross imports of cut and polished diamonds saw a sharp decline of 64.1%, falling to $91.26 million compared to $254.18 million in the same period last year.
The total gross export of gold jewellery in December 2024 stood at $868.03 million. The report noted that demand has tapered off as the wedding and holiday seasons near their conclusion.
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