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India's gem and jewellery exports grew 24 per cent to Rs 28,832.86 crore in February following a recovery in the Chinese and Middle East markets, GJEPC said on Thursday.

The overall gems and jewellery exports during February 2022 stood at Rs 23,326.80 crore, Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.

In February 2023, the overall shipments of cut and polished diamond (CPD) increased 32 per cent to Rs 19,582.38 crore compared to Rs 14,841.90 crore a year ago.

The total export of gold jewellery (plain and studded) rose 29.89 per cent in February to Rs 5,829.65 crore against Rs 4,488.30 crore in the year-ago period.

"We are excited about the strong pace of demand observed by Indian exhibitors at the recent Hong Kong show, which revealed the untapped demand in the Chinese market.

"In February, India saw 32 per cent growth in CPD exports, which can be partly attributed to the strong demand from China and the Lunar New Year festivities," GJEPC chairman Vipul Shah said.

Additionally, after the forward-thinking Comprehensive Economic Partnership Agreement (CEPA) deal signed with the UAE, there was a 45 per cent increase in plain gold jewellery exports, indicating that the Middle East market is rebounding strongly after a slight dip, he added.

Further, studded gold jewellery, which is primarily exported to the US, is also showing a promising improvement of around 20 per cent, Shah noted.

"The Hong Kong market had experienced a negative trend in the last few months, but now we're seeing signs of a rebound. This resurgence in Chinese consumption could potentially lead to even greater improvements.

"In China, the average savings rate is around 40 per cent, which translates to trillions of dollars that could potentially be spent in a 'revenge buying' frenzy, similar to what we've seen in other world markets after prolonged lockdown periods. As a result, we anticipate significant growth in the diamond and diamond jewellery industry over the next six months," Shah said.