India’s Q1 G&J Exports: Silver Proves Covid-Resistant, Rises 93% to $324.59 Million, Overtakes Gold

India’s gem and jewellery exports during the first quarter of FY2020-21 (April-June 2020) declined by 55% year-on-year to $2.75 billion as compared to $6.07 billion registered during the same period in the previous year, on account of diminished manufacturing, demand, and export activities.

Q1 2020 witnessed the lowest export growth of gem and jewellery products on record in April (-86%) due to the complete lockdown in the country. In the following months of May and June 2020, as lockdowns were partially lifted, exports witnessed a slow rise. Gem and jewellery exports in May and June declined 68% and 35% respectively.

Among the factors that affected India’s Q1 performance were curtailed demand, unavailability of workers, lack of confirmed orders, lockdowns in certain places, and the suspension of international flights.

Exports of all commodities, with the notable exception of silver jewellery, witnessed declines ranging from -25% to around -95% year-on-year.

Silver jewellery exports in Q1 2020 skyrocketed 93% to $324.59 million year-on-year, overtaking gold jewellery exports of $321.25 million (-79%) in the same period.

India’s overall Q1 imports of gem and jewellery products declined by 75% to $915.14 million as compared to $3.63 billion. Cut and polished diamonds were the only imported commodity to register any growth, rising 22% to $303 million.

During the first half of the calendar year (January-June 2020), India’s gem and jewellery exports declined by 35% to $10.59 billion as compared to $16.4 billion registered during the same period in the previous year.

In Q1, export declines were witnessed across India’s top 10 gem and jewellery destinations: Hong Kong fell 39% to $1.53 billion, USA dropped 74% to $621.77 million, UAE declined 96% to $112.27 million, Turkey slid 25% to $111.78 million, Thailand dropped 77% to $37.67 million, Israel plummeted 84% to $35.91 million, Switzerland fell 62% to $30.02 million, and Japan dropped 73% to $28.62 million. Meanwhile gem and jewellery exports to Italy have shown growth of 14% to $27.12 million during the three-month period.

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