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How tourism, IPL are delivering a boost to India's gold exports to the UAE

24 September 2020

 

Gold is slowly showing signs of regaining its shine for India’s gold exporters, with jewellery shipments from India posting a substantial jump last month.

 

Industry officials attributed the reason for this to the gradual growth in demand in India’s major overseas markets such as the UAE and near normal functioning of factories in India.The UAE is India’s largest export market for gold jewellery, accounting for about 80 percent of shipments.

 

The UAE administration’s move to open up tourism by issuing tourist visas, combined with the excitement being generated around the Indian Premier League is expected to add further momentum to the pick-up in demand in the UAE market in the coming months, industry officials told Arabian Business.Gold jewellery exports jumped to $313.08 million in August compared to $173.69 million in July, registering a 80 percent growth, according to the latest data compiled by India’s Gems and Jewellery Export Promotion Council (GJEPC).The spurt in exports last month has also helped the industry to post a better cumulative growth figure of $850.59 million during April-August, compared to $494.92 million clocked between April and July.

 

On a year-on-year basis, however, gold jewellery exports from India was still down by a little over 70 percent during April-August from the year-earlier period.“Dubai is the market for the world for gold and jewellery. After the recent relaxations in tourist arrivals, the demand seems to be improving there,” Surendra Mehta, National Secretary of India Bullion and Jewellers Association (IBJA), told Arabian Business.

 

Industry officials said the IPL fanfare may also be helping improve the situation in the UAE.The GJEPC officials were hopeful of exports gaining further momentum in the coming months.

We are optimistic of the near and long term, as several countries are now open for trade,” GJEPC chairman Colin Shah said.“We have seen a steady rise month on month over the last 4-5 months. From $36 million worth of exports (of gems and jewellery) in April, the export numbers have recorded $1.76 billion in August, which is a healthy recovery,” Shah said.GJEPC officials also said that all the gems and jewellery export units are working in full swing of late and the trade is getting back to normalcy.Mehta, however, was not so hopeful of a major recovery in gold jewellery exports in the immediate future because of the high inventory holdings with buyers in the UAE.“Demand situation cannot change so much overnight. Besides, there are still some payment-related issues, as most of the Indian exports have been insisting on upfront payment for shipments,” Mehta said.

 

Source: https://www.arabianbusiness.com/ret