Our Bureau
Mumbai
The tariffs introduced by the President of the United States, Donald Trump has shaken up the market, impacting various different sectors. The Gems and Jewellery sector of India has seen a rapid rise in the exports in July. This sharp rise was seen due to the fear of the hikes that the tariff will bring in August, the traders thus moved rapidly to conclude their deals.
As per the data provided by the Gems and Jewellery Export Promotion Council the overall gross exports in July have risen 15.98% year-on-year to $2,178.24 million, compared with $1,878.09 million a year earlier. The imports for the month have also shown a strong 26.55% growth to $1,810.43 million.
The Managing Director of Kama Jewelry, Colin Shah has stated that the growth that the sector has seen is reflection of a “cautionary uptick” that the traders are looking for before the intended imposition of the heavy import duties.
Shah also emphasized on the importance of the trade talks between India and the US and has stated that the currently announced 50% tariffs could well challenge the tide in the market. He noted that the coming festivals and wedding seasons that will provide a boost in domestic demand will provide some relief to the industry in the coming months.
According to the data by the Gems and Jewellery Export Promotion Council, the cut and polished diamonds category led the surge, with exports increasing 17.76% to $1,071.73 million. The reason around that could be global buyers who are looking to stock up ahead of potential price swings. Imports of these cut and polished diamonds jumped high with 32.02% growth and ended at $113.75 million as manufacturers prepared inventories for peak demand.
