The ceasefire agreement between Israel and Hamas is expected to boost the export of gems and jewellery in the coming months, according to the Gems and Jewellery Export Promotion Council (GJEPC). Data from the GJEPC revealed that the overall gross exports of gems and jewellery in December amounted to $1.97 billion (Rs 16,719.46 crore), a decline from the same month in the previous year, mainly due to economic uncertainty and geopolitical tensions. During this period, many buyers turned to gold as a safe investment rather than spending on lifestyle goods.
However, with the ceasefire and hopes for a truce between Israel and Hamas, the Council anticipates that exports will gradually recover. The total imports of gems and jewellery for December stood at $1.53 billion (Rs 12,992.3 crore), reflecting a 27.23% decrease from the previous year.
A shift in consumer preferences is also noted, with millennials and Gen Z increasingly opting for lightweight jewellery in precious metals for daily wear. This trend is expected to grow significantly in 2025, driving up domestic demand.
Colin Shah, MD of Kama Jewelry, stated that while geopolitical tensions have been a significant hurdle for trade, the ceasefire provides hope for stability and a recovery in trade activities in the upcoming months. Meanwhile, imports of cut and polished diamonds saw a sharp decline of 64.1%, and the export of gold jewellery stood at $868.03 million in December 2024, with a decrease in demand after the wedding and holiday season.
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