India’s Jewellery Exports Surge in FY24

April 23, 2024

India’s jewellery exports, particularly plain gold jewellery, experienced significant growth in the 2023-24 financial year (FY24) despite various challenges faced by the industry. The Gems & Jewellery Export Promotion Council (GJEPC) reported a 61.72% increase in plain gold jewellery exports, reaching $6,792.24 million compared to $4,199.96 million in the previous year.

Key Facts

Total gold jewellery exports (plain and studded) grew by 16.75% in FY24.
The industry faced challenges such as economic downturns in major export markets and geopolitical concerns, which led to a decline in demand.
The UAE and Bahrain accounted for over 85% of India’s plain gold jewellery exports.
The UAE emerged as a significant market, with exports growing by 107.2% to reach $4,528.66 million in FY24.
Australia witnessed a 37% growth in plain gold jewellery exports, attributed to the India-Australia ECTA.
Platinum gold jewellery exports showed robust growth of 449.16%, reaching $163.48 million in FY24.
Coloured gemstone exports increased by 14% to $478.71 million.

Impact of Trade Agreements

The implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) played a crucial role in boosting plain gold jewellery exports.

Efforts to Enhance Exports

The GJEPC has been actively working with the government to implement favourable policies in forthcoming trade agreements with GCC, Canada, UK, and EU.
The council is confident that this proactive engagement will positively impact gem and jewellery exports to these nations in the coming months.

About India’s Gold storage status

India holds the 9th largest gold reserves globally, with 820.625 metric tons as of April 2024. The majority of India’s gold is stored in the Reserve Bank of India’s (RBI) vaults, with a smaller portion held by commercial banks.

RBI’s gold reserves account for 8.2-9% of India’s total foreign exchange reserves
The Gold Monetization Scheme allows individuals to deposit gold with banks and earn interest
The Sovereign Gold Bond Scheme enables investments in gold without physical ownership
- India is the world’s largest gold jewellery exporter, accounting for around 22% of the global gold jewellery exports.
- The Indian gem and jewellery industry contributes about 7% to the country’s GDP and employs over 4.64 million workers.
- The government has taken various initiatives to boost the sector, such as setting up jewellery parks, promoting skill development, and providing financial assistance to exporters.

Despite facing challenges, India’s jewellery exports, particularly plain gold jewellery, have shown remarkable growth in FY24. The implementation of trade agreements and the efforts of GJEPC in collaboration with the government are expected to further boost the gem and jewellery industry’s exports in the coming years.

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