The Hindu Business Line : Gold jewellery exports decline 6% in Q1

Mumbai, July 30 Reflecting a marked slow down in global economic growth and high gold prices, gold jewellery exports has dropped by 6 per cent to Rs 4,685 crore ($1,150 million) in the first quarter of the financial year, against Rs 5,003 crore ($1,198 million) logged in the same period last year, according to the Gem and Jewellery Export Promotion Council data.

Jewellery exports from direct tariff area (DTA) was down 22 per cent to Rs 2,164 crore ($531 million) against Rs 2,786 crore ($667 million), while from the Special Economic Zone and Export Processing Zone it was up 14 per cent to Rs 2,521 crore ($619 million) against Rs 2,217 crore ($531 million).

In June, gold jewellery exports fell 11 per cent to Rs 1,476 crore ($347 million) against Rs 1,661 crore ($411 million). However, the overall gem and jewellery exports in the first quarter grew 23 per cent to Rs 21,603 crore ($5,301 million) against Rs 18,051 crore ($4,321 million).

The rise in export turnover was attributed to an increase in cut and polished diamonds trading activities, which was aided by the reduction of import duty.

Despite the slowdown in the US economic growth, which consumes about 50 per cent of the global jewellery output, the industry is confident that the growth tempo will be maintained at last year’s level of 15-20 per cent.

Mr Sanjay Kothari, Chairman, Gem & Jewellery Export Promotion Council, said “Every year it has been growing around that rate... this year also it will grow by 15-20 per cent.”

Mr Kothari said the global economic slowdown and high inflation would affect the business, but the promotion shows organised by various agencies will persuade people to increase their spending.

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