Diamonds to Gold: How India's Exports Have Adapted

India's gem and jewelry sector is undergoing a notable transformation, as data on the country's exports reveal a concerning trend for the industry. While the plain gold jewelry exports have grown by 61.72% to reach $6,792.24 million in fiscal year 2023-24, the overall gem and jewelry exports experienced a 14.45% decrease.

This shift in consumer preferences towards plain gold jewelry poses a significant challenge for the diamond industry, which has traditionally been a cornerstone of India's gem and jewelry exports. The industry now finds itself in the position of needing to devise strategies to maintain its competitiveness in the global arena.

The robust performance of plain gold jewelry exports can be attributed to the implementation of favorable trade agreements, such as the India-UAE CEPA, which have opened up new markets and opportunities for Indian exporters. Additionally, the proactive engagement of the Gem and Jewellery Export Promotion Council (GJEPC) with the government to secure advantageous policies in upcoming trade deals with GCC, Canada, the UK, and the EU is expected to further bolster the industry's export potential.

The economic shift towards gold jewelry as a stronger store of value, particularly in markets like China, may also be a contributing factor to the growth in plain gold jewelry exports and the relative decline in diamond exports from India.

Now, the diamond industry must now re-evaluate its strategies to address the changing consumer landscape. This may involve exploring new product offerings, enhancing marketing efforts to highlight the unique value proposition of diamonds, and diversifying into complementary segments within the gem and jewelry industry. The diamond industry must also work closely with the GJEPC and the government to ensure that its interests are adequately represented at the policy level.