India’s gems and jewellery exports plunge 35% in March as West Asia conflict hits logistics and shipments

India’s gems and jewellery exports saw a sharp fall in March, dropping 35.23 per cent to USD 27,717.40 million (Rs 2,44,827.26 crore), according to data released by the Gem and Jewellery Export Promotion Council.

The decline comes at a time when the West Asia conflict has been disrupting trade routes and logistics. Exporters say shipments were delayed or stuck as movement through key corridors became difficult, especially for diamond parcels.

Interestingly, exports were slightly higher in March last year at USD 28,669.53 million (Rs 2,42,559.39 crore), showing how quickly external factors have weighed on the sector this time.

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Explaining the situation, GJEPC chairman Kirit Bhansali said the Middle East tensions created serious operational hurdles for exporters. In many cases, shipments simply couldn’t move as planned. Also the spike in insurance cost due to higher risk, added another layer of pressure on the industry.

Sharp correction in Silver prices

In a separate development, Silver prices have corrected sharply from their record highs, falling nearly Rs 2 lakh, or around 45 per cent, from the January peak of Rs 4,39,337. The sharp fall has raised a key question for investors — whether to buy the dip or stay on the sidelines.

Gold has also seen a similar trend. Prices are down over Rs 51,000 from their peak of Rs 2,02,984 per 10 grams. While the correction makes valuations look attractive, volatility remains elevated. This is keeping sentiment cautious.

The decline comes amid a complex global backdrop. The failure of US-Iran talks has escalated tensions around the Strait of Hormuz. This has raised concerns over energy supply disruptions.

At the same time, crude oil prices have surged. Brent is near $103 per barrel and WTI is above $105. Rising oil prices are fuelling inflation fears and complicating the outlook for interest rate cuts.

Typically, such uncertainty supports safe-haven assets. However, higher rates and a strong dollar are weighing on bullion prices, creating an unusual divergence.

Market expert Ajay Kedia said the broader structure for silver remains strong despite recent corrections.

“MCX Silver is once again reflecting the renewed strength, holding well above Rs 2,40,000, seen in the global bullion complex, as safe-haven demand, physical tightness, and structural supply deficits continue to support prices,” he said.

He added that after a volatile correction in March, silver has recovered in line with global markets. “Prices on COMEX rebounded nearly 2 per cent to $77.16 per ounce, driven by fresh geopolitical uncertainty and a softer US dollar,” Kedia said.

Kedia highlighted silver’s dual role as a key support factor. “The key support for silver remains its dual character as both a precious metal and an industrial metal,” he said.

He noted that macro risks are still present. “Ceasefire uncertainty between the US and Iran, continuing risks around the Strait of Hormuz, and persistent inflation concerns are keeping investment demand alive,” he said.

On the monetary side, he pointed to rising liquidity. “The Federal Reserve’s recent $20 billion balance sheet expansion, taking liquidity addition since its policy pivot to nearly $158 billion, is reinforcing the monetary case for silver as a hedge against currency debasement,” Kedia added.