The escalation of the Israel-Hamas war could sound trouble for India’s gems and Jewellery exports, which are already facing headwinds as cost involved in shipments to Israel and some of its biggest markets in the region could increase.
Gems and jewellery is the second biggest item of exports from India to Israel after petroleum products, mainly diesel. West Asia’s share in India’s exports of precious stones and jewellery is around 17% of the total which was $37.9 billion in the last financial year, with exports to Israel another $1.3 billion.
Israel imports gems and jewellery from India and re-exports with some value addition to developed countries. Israel is also the technology provider to the sector.
Cut and polished diamonds constitute the highest exported commodity category with a trade of $1.27 bn . The second highest commodity category Worked Labs Grown exports were $40.65 mn in 2022-23.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
