Namrata Kath Hazarika | 31 Jul, 2012
India's gems and jewellery exports grew by 7.44 percent in June on account of substantial increase in gold jewellery exports to the Middle East countries, said the Executive Director, Sabyasachi Ray, Gems and Jewellery Export Promotion Council (GJEPC).
"The gems and jewellery exports declined in the month of April and May this year. But, in the month of June there has been an increase of growth due to the surge of gold jewellery exports to the middle-east countries. Exports to the Middle East has been very satisfactory last month," he told SME Times.
The gold jewellery exports registered a growth of 155 percent to USD 2 billion in June as compared to the same period last fiscal.
In fact, the total gems and jewellery exports touched USD 4.2 billion in June as compared to the same period in the corresponding year.
Moreover, there has been a continuous decline in the cut and polished diamonds and coloured gemstones. In June both the items declined by 34.86 percent and 24.4 percent as compared to the same period last year.
Ray also mentioned that the diamond jewellery exports from India will continue to decline due to the recent imposition of 2 percent import duty on polished diamond which has stopped trading of the essential item.
This trend will continue till next January and after that there is some expectations that things will be positive, he added.
However, it will be very difficult to say as of now whether there will be growth in the upcoming months. "We cannot predict things but we have to wait and watch," Ray added.
During April-June this year, the gems and jewellery exports dropped about 7 per cent to USD 10 billion over the the same period last year due to weak overseas market conditions, the Council said.
During the first quarter this fiscal, the export growth of cut and polished diamonds declined by 38 percent to USD 4 billion and the coloured gems stone showed a decline of 11 percent as compared to the same period last year.
Gems and Jewellery exports remained flat at about USD 43 billion in fiscal 2011-12 as compared to the previous fiscal.