Gem & jewellery export slightly down, might do better this year

Segment likely to do better this year

Gem and jewellery (G&J) shipments, nearly 13 per cent of India’s overall merchandise export, fell a marginal 0.4 per cent in financial year 2014-15.

Data compiled by the Gems & Jewellery Export Promotion Council (GJEPC) showed overall G&J export was $39.9 billion in 2014-15, as compared to $40.15 bn the previous year. In rupee terms, shows data compiled by the G&J Export Promotion Council, export rose marginally to Rs 243,885.8 crore from Rs 242,837 crore a year before.

“The industry battled several economic issues — downturn in China, political and terrorist unrest in the Middle East, a declining European market and the suffering Russian rouble, which had a direct and adverse impact on export. However, foresight and agility helped survive these trying times, owing to significant action in the US and UAE to boost export,” said Vipul Shah, chairman of GJEPC.

It had organised several buyer-seller meets in the US and participated aggressively in Dubai trade fairs, both important jewellery export destinations. Also, continuous dialogue with key G&J entities in the US, with offers of value-additions, and trend forecast seminars for Indian manufacturers, had helped.

Gross export of cut and polished diamonds fell 5.5 per cent in dollar terms to $23.2 bn versus $24.5 bn a year before. In rupee terms, it was a a decline of 4.5 per cent to Rs 141,514 crore. This can be attributed to a decline in volume terms of the gross import of rough diamonds (‘roughs’ in industry parlance), at 14.73 mn carats, or 9.1 per cent, from the year before.

The lower costs of importing roughs through the notification of a special economic zone in this regard is expected to benefit the Indian industry substantially in the coming years. The industry is optimistic about maintaining the current level of performance and intends aligning with global diamond mining companies to promote diamond jewellery.

For this financial year, which began on April 1, Shah said the first quarter was set to remain flat. "Gradual growth is expected during the second quarter and onwards. The entire year is set to end with single-digit growth in G&J export,” he said.

The diamond jewellery segment, which contributes around half, is likely to remain flat but shipment of gold and silver ornaments is expected to see good growth.