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Gem and jewellery export dipped three per cent in March to $4.38 billion (about Rs 23,959 crore) due to weak demand for gold jewellery, according to Gem and Jewellery Export Promotion Council data released on Tuesday.
Gold jewellery export dropped 36 per cent in March to $963 million (Rs 5,241 crore) against $1.49 billion (Rs 7,519 crore).
Vipul Shah, Chairman of GJEPC, said that the fall in gold jewellery exports was largely due to dip in trading activity at the Special Economic Zone.
DIVERSION TO SEZ
With the diversion of gold from special economic zone, the Government on Tuesday suspended pure gold imports and exports from SEZ, he said. Companies in the special zone are allowed duty-free import of the yellow metal as opposed to a maximum of six per cent charged on imports by other entities.
Gold jewellery imports into special zone in March fell 77 per cent to $101 million (Rs 549 crore). Cut and polish diamond exports were up 10 per cent at $2.34 billion (Rs 12,716 crore).
Gem and jewellery exports in the financial year ended March dropped nine per cent at $39.03 billion (Rs 212,638 crore) due to depressed demand on the back of global economic slowdown.
Cut and polish diamond exports dipped 25 per cent at $17.42 billion (Rs 94,675 crore), while gold jewellery export jumped 33 per cent to $13.05 billion (Rs 71,362 crore).
Gem and jewellery exports accounted for 13 per cent of the total merchandise exports estimated at $301 billion in 2012-13.
The industry imported $36 billion of raw material and exported $39 billion of value-added goods, thus earning a foreign exchange of $2.13 billion in 2012-13.
The foreign exchange earning is up 155 per cent compared with 2011-12.
Cut and polish diamond imports has dipped 61 per cent to $5.58 billion (Rs 30,309 crore). This was one of the major reasons for the industry contributing positively to the forex earnings.
The industry has strived hard towards reducing the current account deficit by controlling imports and increasing exports, said Shah.
The rebound in the US and Japanese jewellery market is expected to push exports up 15 per cent in this fiscal.
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