India's gems and jewellery exports jumped by 8.95 per cent for financial year 2016-17 on recovery in demand from the United States (US), Hong Kong and the United Arab Emirates (UAE), the three destinations accounting for over 75 per cent of India's overall shipment of precious ornaments by value.
Financial year Export value ($bn) 2004-05 15.66 2005-06 16.70 2006-07 17.16 2007-08 20.92 2008-09 24.89 2009-10 29.44 2010-11 43.05 2011-12 43.21 2012-13 39.14 2013-14 34.99 2014-15 36.22 2015-16 32.63 2016-17 35.55 Source: GJEPC
Data compiled by the apex industry body the Gems and Jewellery Export Promotion Council (GJEPC) showed India's net exports of gems and jewellery at $35.55 billion (Rs 238,252.79 crore) for the financial year 2016-17 compared with $32.63 billion (Rs 213,871.29 crore) for the corresponding period last year.
"The US economy is on the revival path after witnessing a slowdown in the past few years. The consumer sentiment is positive and buyers in the United States have started coming into the market for the purchase of new jewellery.
But, India needs to do some promotional activities for the rapid growth in jewellery exports as diamond miners like De Beers and Alrosa cannot do it alone. We, however, estimate India's gems and jewellery exports to move up by 10 per cent for the financial year 2017-18," said Praveenshankar Pandya, Chairman, GJEPC.
Apart from the United States, jewellery demand also moved up from Hong Kong and the United Arab Emirates. While Hong Kong reported increased in jewellery demand for their supply to China and other destinations in the north east, demand from the UAE also rose despite five per cent import duty levied by the government in the region.
Pandya said that the local consumption of jewellery in the UAE was impacted due to a decline in the crude oil prices (being majorly oil driven economies), re-routing for exports to the African and European countries would not get impacted due to duty levy.
Meanwhile, cut and polished diamonds contributed around 60 per cent of India's overall exports of precious metals and stones.
While exports of gold jewellery jumped by a marginal 1.92 per cent to $8.7 billion for 2016-17, shipment of coloured gemstones declined by a marginal three per cent to $419.9 million.