The Hindu Business Line : Gem & jewellery exports post 1.45% growth

New Delhi, April 23 India’s gem and jewellery exports posted a modest growth of 1.45 per cent during 2008-09 at $21.1 billion, primarily driven by gold jewellery exports, including medallions and ornaments. The country exported $20.8 billion of gem and jewellery in 2007-08.

Addressing a news conference here to highlight the gem and jewellery industry’s export promotion here, the Gem & Jewellery Export Promotion Council (GJEPC) Chairman, Mr Vasant Mehta, conceded that due to the slowdown of the US economy in the second half of last fiscal, the gem and jewellery industry saw a decline of close to 19 per cent in its second half exports. But the overall modest growth of 1.45 per cent was rendered possible thanks to a 24 per cent growth in gold jewellery exports from $5.5 billion in 2007-08 to $6.9 billion in 2008-09.

However, thanks to the continuing weakness of the Indian rupee vis-À-vis the US dollar, gem and jewellery exports in 2008-09 showed up a 14 per cent growth at Rs 95,092 crore, against Rs 83,765.48 crore in 2007-08.

Overall exports

Mr Mehta said that the overall export for 2008-09 was close to the Council’s target of $21.9 billion on the heels of a substantial demand in the first half of the last fiscal and augmented gold jewellery exports to the United Arab Emirates (UAE) which has become, by far, the largest exporting destination accounting for 31 per cent of India’s exports.

This was followed by Hong Kong with 25 per cent and the US with 20 per cent. The gem and jewellery sector accounted for 13 per cent of India’s total merchandise exports.

cut and polished diamonds

Mr Mehta said cut and polished diamonds (CPD) saw a decline of 8.24 per cent with exports declining from $14.2 billion in 2007-08 to $13 billion in 2008-09.

Even in rupee terms, this segment revealed a minimal increase of 2.68 per cent with exports inching up from Rs 57,117 crore in 2007-08 to Rs 58,649.44 crore in 2008-09.

Volume of CPA exported stood at 40.2 million carats last fiscal against 43 million carats in 2007-08.

Coloured gemstone exports

Coloured gemstone exports also plunged by four per cent at $266 million in 2008-09, against $276 million in the previous year.

Mr Mehta stated that decrease and cancellation of export orders from the US and major markets had led to retrenchment of workers engaged in the industry, citing the available data that during September 2008 to March 2009, nearly 1.75 lakh to two lakh workers had been laid off.

Export target

Asked about the export target for the current fiscal, Mr Mehta said “we will set our export target after a few months.

Due to the recession, demand is still low so far for this luxury item. We expect it to improve only in the second half of the current fiscal”.

He disclosed that GJEPC would host buyer-seller meet in Mumbai on August 4-5 for Indian diamond and colour stone manufacturers and select overseas and domestic buyers (jewellery manufacturers and retailers) to forge new B2B relationships.

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