Analyzing The Impact of Exchange Rate Volatility on India’s Gems and Jewelry Industry

Wabule  Moreen

doi:10.69968/ijisem.2025v4i3138-147

Authors

Wabule Moreen Research Scholar, Indian Institute of Sustainability, Gujarat University.

DOI:

https://doi.org/10.69968/ijisem.2025v4i3138-147

Keywords:

Exchange rate volatility, Gems and jewelry, Export competitiveness, Trade balance, India

Abstract

This study investigates the impact of exchange rate volatility on India’s gems and jewelry industry, a vital sector contributing significantly to the country’s export earnings. Using secondary data from 2010 to 2020, the research evaluates how currency fluctuations influence trade performance, export destinations, and competitiveness. The findings reveal that while exchange rate movements present operational challenges, their effect on export volumes remains minimal and statistically insignificant. India's jewelry exports have remained stable due to strong external demand, diversified product offerings, and strategic market positioning. The analysis also highlights a continued trade deficit with raw material sources like Belgium, yet India's competitive advantages in craftsmanship, scale, and adaptability have helped maintain its global trade strength. This paper concludes that exchange rate volatility is not the primary driver of performance in this sector but remains a relevant factor for strategic risk management.

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