India's Gem, Jewelry Exports Show Recovery

RAPAPORT... India's international trade in gems and jewelry improved in November as the government and the industry pulled together to weather this year's unprecedented crisis, according to the country's Gem & Jewellery Export Promotion Council (GJEPC).The decline in the country's exports narrowed to 4%, for a total of $2.48 billion, compared with $2.58 billion in November 2019, the organization reported Monday. That contrasted with a 44% drop for the April-to-November period combined.The GJEPC attributed the recovery to the online trading events it held during the pandemic, as well as the Indian government's relief measures. In addition, central banks injected enough liquidity to support the industry; diamond miners adjusted their strategies to help the midstream; and US demand picked up, especially through online channels, the group added.India also saw a resurgence in its diamond-cutting activity following the relaxation of social-distancing rules and in response to polished demand and shortages. Manufacturing production is at almost 90% of capacity after rough imports jumped 69% year on year to $1.35 billion in October, GJEPC chairman Colin Shah pointed out. In November, rough imports slipped 10% to $1.11 billion.Polished-diamond exports fell 33% year on year to $8.95 billion in the eight months ending November 30, while rough imports dropped 41% to $5.02 billion.Image: Merchants examine diamonds on the streets of Mahidharpura, Surat, India, in 2015. (Shutterstock)