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Gem and jewellery exports were down 19 per cent last month at $2.59 billion (₹16,208 crore) against the $3.20 billion (₹19,509 crore) logged in the same period last year due to a sharp fall in exports of gold jewellery and diamonds.
Gold jewellery shipments were down 38 per cent at $666 million (₹4,158 crore) against $1.08 billion (₹6,576 crore) even as the Government eased major curbs on gold imports
However, jewellery exporters are finding it difficult to compete in the global market due to a levy of 10 per cent import duty on gold, the key raw material in jewellery making.
Cut and polished diamond exports also dipped 5 per cent to $1.75 billion (₹10,925 crore) from $1.95 billion (₹11,908 crore).
Imports of raw materials, including gold bars and rough diamonds, were down 18 per cent at $2.69 billion (₹16,848 crore) against $3.31 billion (₹20,222 crore) in the same period last year, largely due to the fall in bullion prices.
Pankaj Parekh, Vice-Chairman of GJEPC, said the industry was impacted by the slowdown in China and weak sentiment in West Asia due to a sharp fall in crude prices. This apart, the euro has weakened against the dollar, making all imports costlier for consumers in that country.
“The Indian rupee is one of those rare currencies that is still holding fort against the dollar and we expect exports to be much better this fiscal year,” he said.
In the financial year ended March 2014 exports were up 3 per cent at $36 billion against $34.99 billion recorded in the same period a year earlier, largely due to higher gold jewellery exports. In rupee terms, exports were up 5 per cent at ₹2.21 lakh crore (₹2.12 lakh crore). Gold jewellery exports doubled to $6 billion ($3 billion) while cut and polished diamond exports were down 5 per cent at $23.16 billion ($24.49 billion).
The return of consignments reduced substantially to $3.70 billion ($5.25 billion) as the industry was cautious on placing its wares in the export market unlike last year. The finance available to the bullion industry was also curtailed due to curbs imposed by the Government. The industry’s imports during fiscal year 2014-15 were up marginally by 1 per cent at $31.47 billion (₹1.92 lakh crore) against $31.07 billion (₹1.87 lakh crore).
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