US RETAIL BOON FOR G&J EXPORTS

With the US retail market projected to grow in double-digits in 2021, Indian gems and jewellery exports are expected to rebound. Over 200 per cent growth in US jewellery sales has already lifted exports of studded gold jewellery and polished diamond sales above pre-Covid levels in April-May.

The National Retail Federation of the US has issued its revised annual forecast for 2021, anticipating that retail sales will grow between 10.5 and 13.5 per cent against the initial projection of 6.5 per cent.

“The combination of vaccine distribution, fiscal stimulus and privatesector ingenuity has put millions of Americans back to work”, NRF president and CEO Matthew Shay said.

This is good news for Indian gems and jewellery exporters, who have been witnessing stagnant growth in shipments for the past few years. US retail jewellery sales grew 203 per cent in May 2021 compared to May 2020 and grew 44.7 per cent compared to May 2019, according to the Mastercard Spending Pulse monthly macroeconomic report.

The positive momentum is already visible in the April-May exports from India. Studded gold jewellery saw a growth of 41 per cent in AprilMay 2021 compared to pre-Covid April–May of 2019. Cut and polished diamond exports too have witnessed an increase of 21 per cent. “The revival of exports has happened due to the opening of international markets, resurgent demand and strong unstinted support from the Government of India on various issues,” said Colin Shah, chairman, GJEPC.