India will soon give a tough competition to Thailand and China, the two major players in silver jewellery, said industry executives.
According to figures released by the Gem & Jewellery Export Promotion Council (GJEPC), silver jewellery exports in the first four months of this financial year increased to Rs 3,855.65 crore from Rs 1,748.30 crore a year ago.
Silver prices appreciated 59% from April to July while gold prices appreciated 23%. “Silver is affordable too and Indian designs are liked by overseas buyers. Soon, we will compete with Thailand and China, who are major players in this category,” said Colin Shah, chairman, GJEPC.
Silver production is expected to be lower this year as major mines in Mexico, Peru and Bolivia have announced nationwide lockdown owing to Covid-19.
According to the Silver Institute’s World Silver Survey 2020, estimated mined output will be down 54.5 million ounces, or 1,694 tonnes, representing a 6.4% decline.
India’s overall gross exports of gems and jewellery in April-July fell 45.92% to Rs 30,983.84 crore from Rs 57,288.02 crore a year ago. In July, exports fell 32.59% to Rs 10,187.04 crore from Rs 15,112.53 crore a year ago.
Cut and polished diamond exports in the first four months of this fiscal fell 41.66% to Rs 20,524.70 crore from Rs 35,179.83 crore in the year-ago period.
Gold jewellery exports plunged 71.33% year-on-year in April-July to Rs 3,735.97 crore from Rs 13,028.83 crore.
The GJEPC chairman said the industry was witnessing early signs of recovery. “Branded jewellery players in Europe have become active. Also, the US and China are showing a positive trend. If gold prices fall below $1,800 per troy ounce, then we can see further improvement,” he said.