SME Times News Bureau | 16 Dec, 2011
On account of an increase in prices of gold and diamonds, India's gem and jewellery exports may maintain their 15 percent growth trajectory to touch USD 49.5 billion in the 2011-12 fiscal, reports media.

In the 2010-11 fiscal, these exports stood at USD 43 billion, the Gems and Jewellery Export Promotion Council has said.

"The first eight months have been okay for us and I believe the growth momentum will be maintained in the remaining months of the current fiscal," GJEPC Chairman Rajiv Jain told a leading news agency.

During the April-November period this fiscal, gem and jewellery exports grew by 15.5 percent to USD 29.1 billion in comparison to the same period last year.

India mainly imports gold and rough diamonds in large quantities and re-exports value-added items like jewellery.

Prices of gold, diamonds and coloured stones increased by 12-13 percent in the first eight months this fiscal, Jain said.

The value of exports has seen an increase despite sluggish demand in Western markets, mainly because of the rise in raw material costs.

Jain noted there is not much growth in demand for jewellery exports, "but exports are growing in terms of value. These export figures are reflective of an increase in gold and diamond prices."

The UAE is the major market for India's gems and jewellery exports, accounting for 43 percent of overseas shipments, followed by Hong Kong (30 percent) and the US (17 percent).

Exporters are trying to tap new markets in countries situated in Latin America and Africa, besides Russia, Jain said.