Indian gem and jewelry exports amounted to $34.8 billion in the 2013-14 fiscal year, a decline of 11 percent from the previous year, according to a statement from the Gem & Jewellery Export Promotion Council (GJEPC).
There was an increase of 12.65 percent in exports of cut and polished diamonds totaling $19.6 billion, and an increase of 12.0 percent in imports of rough diamonds to $16.7 billion, indicating an increase in cutting, polishing and other manufacturing activities in India, the GJEPC reported.
The export of gold jewelry gold medallions together for the period was $11.05 billion, a decline of 39.5 percent. “This was mainly due to the non-availability of gold limiting the extent of trade for many of the Indian players. The average price for exported gold was lower than in the previous year adding to the woes of the industry that took a hit and closed at a negative of 11 percent.”
Colored gemstone exports also dropped – by 20.10 percent – to $519.0 million, while silver jewelry exports surged by 58.6 percent higher to $1.46 billion.
Key export destinations for India’s gems and jewelry in 2013-14 were the United Arab Emirates with 35 percent of exports valued at $12.20 billion, followed by Hong Kong with 28 percent with a value of $9.80 billion, and the USA at 14 percent with an export value of $4.95 billion.
GJEPC Chairman Vipul Shah said, “There has been a robust growth in the diamond sector. The market is bullish and the US and Europe markets have also improved. Although, there has been a decline of 11 percent in the overall performance, there are numerous opportunities for growth and improvement. We are looking at new ventures, new markets such as Middle East, Russia, China and various initiatives to promote the industry. The outlook for 2014-15 looks positive in the overall gems and jewelry exports in the current fiscal year.”
Vice Chairman Pankaj Parekh said, “The prospects for 2014-15 look bright for jewelry, especially silver jewelry, as the 80-20 scheme might get diluted, import duty is expected to be rationalized as the Reserve Bank of India has already allowed four more banks to operate in imported gold trading. There is also a huge demand in the international market, so we expect a boom in the silver jewelry exports with at least 10 percent more exports compared to 2013-14.”