Gem and jewellery exports in December declined 11.25% to Rs 19,432.88 crore ( USD 2.36 billion), mainly because of a drop in demand in the US. Looking at the nine-month April-December window, jewellery exports grew 6.28% to Rs 2,27,537 crore, but in dollar terms, there was a marginal fall of 0.73%.
With just three months of the current financial year left, and exports touching a little over USD 28 billion so far, it is almost certain that the target of USD 46 billion for fiscal 2022-23 will not be met.
These are some of the signals of what is brewing. As the US economy slows and could fall into recession, the jarring impact will be felt all over including India. The US accounts for nearly 40% of India’s jewellery exports, and gems and jewellery are the third largest in India’s export bucket.
World Bank’s grim warning
On Tuesday, the World Bank sent out a grim warning that the world’s financial…
