India’s gold jewellery exports shine in September; up 36% y-o-y
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After the decline seen last year, India’s exports of diamonds and gold jewellery are expected to rebound in FY2014-15 with exports of these items recovering significantly in September 2014. India’s exports of Cut & Polished (C&P) diamonds in the first six months of FY2014-15 have reached $12.08 billion, which is slightly down from exports worth $12.4 billion recorded in April-September 2013. However, exports of C&P diamonds in September 2014 increased to around $2.66 billion, up about 11.2% from $2.39 billion recorded in same month last year, according to Gem & Jewellery Export Promotion Council (GJEPC). India’s gold jewellery (studded and plain) exports surged to $955.13 million in September 2014, up 36% from $699.71 million in September 2013, helping India’s overall exports of gold jewellery to grow to over $4.57 billion in H1 FY2014-15, up 26% y-o-y from $3.6 billion worth exports in H1 FY2013-14. “September was a good month for Indian exporters with significant increases in the exports of cut & polished diamonds and gold jewellery (plain & studded), the two largest segments in the gems & jewellery sector,” said GJPEC. India’s exports of silver jewellery in H1 FY2014-15 have also surged by 31.65% y-o-y to $1.04 billion, compared to $793.7 million in H1 FY2013-14. However, exports of coloured gemstones have declined to $224.36 million, down about 36% from $351.99 million in H1 FY2013-14.
India is considered as the manufacturing hub for C&P diamonds in the world, and exports of C&P diamonds account for around 55% of India’s total gems and jewellery exports of around $34.9 billion. Earlier this month, Vipul Shah, chairman, GJPEC, urged Rajeev Kher, Commerce Secretary, Government of India, to set up a Special Notified Zone for import and trading of rough diamonds to help boost India’s C&P diamond and jewellery exports. GJPEC has also reiterated its demand to include the Gems and Jewellery Sector under the Interest Subvention Scheme and has requested the government to grant banking license to ABN AMRO BANK NV to help India’s diamond industry get access to loans. These demands are likely to be considered in the Union Budget FY2015-16, said Kher.
This article was published on October 24, 2014.