The sharp decline is largely attributed to weakened consumer demand amid global unrest and economic slowdown in major markets like China, according to the Gem and Jewellery Export Promotion Council (GJEPC).

The latest data released by GJEPC, the apex body for India's gems and jewellery industry, revealed that the overall exports in this category stood at USD 2,170.71 million in July 2022, highlighting the steep year-on-year drop.

GJEPC Chairman Vipul Shah expressed concerns about the downturn, citing geopolitical disturbances and economic struggles in key markets such as the United States and China as primary reasons for the decline. "The exports are mainly affected due to a decline in demand following geopolitical disturbances in key markets like the US and China. The demand in the China market has drastically slowed down due to a struggling economy," Shah stated.

Among the segments most affected, the export of cut and polished diamonds (CPD) saw a 21.34% decrease, falling to USD 907.67 million from USD 1,174.41 million in July 2022. Gold jewellery exports also declined, registering a 10.53% drop to USD 530.38 million, down from USD 603.12 million in the same period last year.

Despite the challenging export environment, the recent India International Jewellery Show (IIJS) Premiere 2024, held from August 9-13, brought a glimmer of hope. The six-day event generated an estimated USD 12 billion (approximately Rs 1 lakh crore) in business, with over 50,000 buyers in attendance and international delegations from 13 countries, including Saudi Arabia, the United Kingdom, and Japan.

Shah highlighted the success of the event, noting, "IIJS Premiere 2024 was a tremendous success, generating over USD 12 billion in business for our exhibitors. The business was mainly dominated by gold jewellery following weakness in prices of the yellow metal." He also pointed out the growing shift in the industry towards designs that appeal to millennials and Gen Z, as evidenced by the diverse product offerings showcased at the event.

The presence of international participants at IIJS Premiere 2024 underscores its importance as a premier platform for connecting with global markets and expanding trade opportunities. "IIJS Premiere 2024 played a crucial role in boosting exports and expanding our global footprint," Shah added, emphasizing the show's significance in the industry's efforts to counteract the current economic challenges.