The wave of political unrest that has swept a number of Middle Eastern countries this past month could affect gemstone and jewelry exports from India, the Art of Jewellery reports.

In the past five years, West Asia and North African nations (WANA) have begun to emerge as potential markets for gemstones, diamonds, and jewelry and nearly 5% of India's exports in this sector go to these countries.

Gem and Jewellery Export Promotion Council (GJEPC) Chairman Pankaj Parekh said that the political crisis in Liyba – which has seen mass bloodshed since protests against Col. Muammar Gaddafi's regime broke out – has caused a drop in imports of gold jewelry from India, which had been on the rise.

Other members of India's gemstone, jewelry, and diamond industry see the recent Mideast tension as less significant. One Mumbai diamond trader said that WANA countries were "growing markets" that did not comprise a large percentage of India's gem and jewelry exports. The trader also noted that much of the Indian jewelry destined for West Asia is routed through Dubai – whose market for Indian goods has increased up to 30% in recent years.

Despite the fact that gold is nearing an all-time record high, India's exports of gold jewelry were up in January 2011, totalling $569 million, a 15.38% increase over the corresponding month of 2010.