Gem and jewellery export dipped eight per cent to $33 billion (₹2.10 lakh crore) in the last financial year from $35 billion (₹2.37 lakh crore) previously on sharp drop in demand after the levy of five per cent value-added tax.

Cut and polish diamond export to the UAE was down 18 per cent to $1.56 billion ($1.88 billion) and its overall contribution to the export basket was down to 6.55 per cent from 8.28 per cent.

However, gold jewellery exports increased 11 per cent to $10 billion ($9 billion) as sale in non-traditional markets such as the UK jumped 80 per cent to $472 million ($263 million).

Silver jewellery exports was down 16 per cent at $3.38 billion ($4.02 billion), while that of other products such as gold medallion, pearls, synthetic stone and costume fashion jewellery was down 60 per cent to $2 billion ($5.61 billion).

The Centre, late last year, banned export of gold jewellery, medallions and other articles above 22-carat purity in a bid to check round tripping of the precious metal.

Pramod Kumar Agarwal, Chairman, Gem and Jewellery Export Promotion Council, said India exported 93 per cent of the world’s polished diamonds worth $23 billion.

Gemstone imports

Despite just three per cent increase in coloured gemstone exports at $433 million ($420 million), import of rough coloured gemstones zoomed by 59 per cent to $906 million ($571 million).

Imports of gold bar were up 34 per cent to $5.68 billion ($4.23 billion), while that of rough diamond was up 11 per cent at $18 billion ($17 billion). Overall imports of raw material was up 10 per cent at $31 billion ($29 billion).

Collin Shah, Vice-Chairman, GJEPC, said the gold jewellery sales in the US has taken a beating due to drop in footfalls at jewellery stores which are largely located in malls.

However, he said newer markets in Turkey, South Africa, Latin America, Russia, Iran and Jordan are being explored by the industry.

Related Topics
comment COMMENT NOW