Against the backdrop of global geopolitical and economic headwinds, Gujarat, India's top exporting state, saw a 15.74% drop in commodity exports. According to government data, the state exported commodities worth $ 52.51 billion from April 2023 to August 2023, compared to $ 62.32 billion for the same time the previous year. Gujarat is the top exporter among India's 36 states and union territories, accounting for more than 30% of total exports.

Chemicals and Allied Products, as well as Gems and Jewellery, have been the biggest contributors to the state's commodity exports falling. The largest exported product from Gujarat, Chemicals and Allied Products, fell to $ 31.89 billion in the first five months of FY24, compared to $ 39.53 billion in the same time in FY23. While gem and jewelry exports fell by $ 1.97 billion to $4.05 billion from $6.02 billion previous year.

According to Bhupendra C Patel, Chairman of the Basic Chemical, Cosmetics, and Dyes Export Promotion Council (CHEMEXCIL), "geopolitical escalations such as the Russia-Ukraine war have increased energy costs, which have increased raw material costs." Increased raw material costs lowered firms' profitability, and they were unable to prepare ahead of time for raw resources. The war boosted raw material costs while without increasing the price of completed goods proportionally."

Gems & Jewellery was the second largest exported commodity from Gujarat (in terms of value) from April to August in FY23, but its exports fell 32% in FY24, placing it third among all commodity exports from the state. Engineering Goods have taken the position of gems and jewelry export. Engineering products exports totaled $5.82 billion, up from $5.73 billion the previous year. Aside from chemicals, gems and jewelry, and leather, all other commodities have done well and have not changed significantly.

According to experts, the Gems and Jewellery Industry, which is mostly focused in Surat, is in jeopardy as a result of geopolitical tensions and economic instability in the United States of America (the largest export destination for diamonds cut and polished in India) and European countries.