Israel-Hamas ceasefire to help gems and jewellery exports pick up pace: GJEPC

New Delhi:  The ceasefire deal between Israel and Hamas will pave the path for gems and jewellery exports to pick up pace in the coming months, the Gems and Jewellery Export Promotion Council (GJEPC) said on Friday.

The GJEPC data showed that overall gross exports of gems and jewellery in December stood at $1967.98 million (Rs 16,719.460 crore), down from the same month in previous year due to economic uncertainty amid geo-political conditions, as buyers leaned more towards yellow metal as safe haven for investments rather than splurging on lifestyle.

Having said that, given the ceasefire and hopes of truce amid Israel and Hamas, exports will gradually start to pick up pace, said the Council.

The overall imports of gems and jewellery for December stood at $1526.95 million (Rs 12,992.3 crore) showing a decline of 27.23 per cent from the same period last year.

However, there is shift in buying behaviour among buyers as the millennials and GenZ are increasingly preferring lightweight jewellery in precious metals for daily wear. This trend will see a major uptick in 2025, thereby boosting domestic demand, said the report.

According to Colin Shah, MD, Kama Jewelry, the geo-political tension has been acting as a major deterrent for the trade activities.

“However, the ceasefire deal between Israel and Hamas comes as a major relief for the entire globe, which will pave the path for both the countries to come to a truce. Hence, we hope to see gradual rebound in trade activities in the upcoming months,” he noted.

The overall gross imports of cut and polished diamonds saw a decline of 64.1 per cent, which stood at $91.26 million compared to $254.18 million for the same period last year.

The total gross export of gold jewellery in December 2024 stood at $868.03 million. Since the wedding and holiday season is on the verge of getting over, the demand has been coming down, the report mentioned.

—IANS