Gems and Jewellary exports increases by 12% in April-July

In April-July period of the current fiscal, export of gems and jewellary increased by 11.66% to $11.40 billion from $10.21 billion in same period of last fiscal. The rise in first four months was mainly supported by cut and polished diamond exports, as it rose by 5.22% to $7.25 billion during the period from $6.89 billion a year ago.

According to the data from Gems and Jewellery Export Promotion Council (GJEPC), demand for gems and jewellary is gradually picking up in markets like the US, which is helping in recording growth in exports in the sector. Further, exports of silver jewellery grew by 51% to $1.30 billion during the four months period of this fiscal. However, shipments of gold jewellery decreased by 26.47% to $1 billion during the period under review, from $1.36 billion a year ago and export of gold medallion and coins felled by 9.51% to $1.48 billion.

On other hand, import of rough diamonds rose by 13.27% to $6 billion and gold bars grew by 40% to $1.72 billion in April-July 2016. Gold imports more than halved to $1.08 billion in the month. Further, after rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84% due to decline in shipments of engineering goods and petroleum products. The government is hoping that incentives such as 3% interest subsidy and enhanced rate for duty drawback would further help to control the decline in exports as gems and jewellery contribute about 14% to the country's overall exports.