The Gem & Jewellery Export Promotion Council (GJEPC) on Saturday reported a 12 per cent jump in gold jewellery exports during the current fiscal, contrasting with a 10 per cent decline in diamond exports over the first nine months.

The apex trade body expressed optimism about a turnaround in diamond exports, particularly in the US, which accounts for nearly half of the total exports.

The exports of cut and polished diamonds between April and November of FY25 dropped by 18.8 per cent to USD 8,980.2 million compared to the same period the previous year. China's sluggish demand remains a concern for diamond exports, officials said on Saturday.

Nonetheless, a five per cent surge in US demand during the Thanksgiving festival provided some relief for December month, they said.

"We believe the worst is behind us, with a 10 per cent decline in the first nine months of this fiscal. With the new government in the US under Donald Trump, we are optimistic about a revival in demand and expect 10-15 per cent growth in 2025-26," said GJEPC Chairman Vipul Shah at the Silver Jubilee celebration of the Eastern Regional Office in Kolkata.

Gold jewellery exports benefited from rising gold prices, noted state GJEPC official Pankaj Parekh.

Shah added that the industry, in its pre-budget proposals, has sought an alignment of duty drawbacks for platinum, an emerging precious metal with significant potential.

The GJEPC said it has invested Rs 150 crore in the global generic promotion of diamonds and is also promoting lab-grown diamonds to cater to price-conscious consumers.

Shah also announced plans to establish Singur in West Bengal as a global export hub for fashion and costume jewellery, leveraging its skilled workforce and artisanal heritage.

He also highlighted shifting global trade dynamics, noting that the US is reducing procurement from China.

"This presents a strategic opportunity for Singur's manufacturers to meet growing demand and elevate their global presence. Singur has around one lakh skilled Bengali 'karigars' working in local manufacturing units. Women constitute 20 per cent of this workforce. Developing Singur as an export hub will boost the local cottage industry," he said.

Singur, located in Hooghly district, offers strategic advantages with its proximity to five railway stations, NH-2, and the Kolkata airport.

The area is also home to vendors who import raw materials, including recently established gypsum manufacturing units of imported quality, Parekh said.

"Kolkata's renowned craftsmanship forms a foundation of artisanal heritage, providing a rich legacy of artistic skills that Singur's jewellery manufacturers can leverage," Shah added.

Courtesy: Business Standard