Gems and Jewellery exports to pick up early next year
Deepak Kumar | The Dollar Business
With the US economy showing a sign of swift recovery, India’s industry analysts are optimistic that it will benefit the country’s gems & jewellery exports which have of late shown a continuous decline. “We are expecting some global recovery. Our major export destination is the USA and its economy is going through swift recovery. We are hopeful that our gems & jewellery exports will pick up in a month or two,” Bachhraj Bamalwa, Director of the All India Gems and Jewellery Trade Federation (GJF), told The Dollar Business. In November, India’s gems & jewellery exports contracted by 21.52% to over $2.89 billion from about $3.68 in during the corresponding month of 2014-15. This sector contributes about 14% to the country’s total exports. The industry has been requesting the government to cut import duty on gold, in order to ensure adequate supply of the yellow metal and help meet exports demand. Analysts have attributed global declining prices of gold, less demand and a surge in return consignments as some of the key reasons responsible for India’s dipping gems & jewellery exports. In October this year, exports from this sector shrank by about 13% year-on-year to $3.48 billion. “It is due to the global slowdown. But we are expecting some revival. This year, our gems & jewellery exports are down by 15% and we are expecting this to improve in a month of two,” Bamalwa said.
December 23, 2015 | 03:55pm IST