Gems & jewellery exports decline by 11% in 2013-14

GJEPC attributes dip to fall in gold price and stringent import policy

Gem and jewellery exports declined 11 per cent in 2013-14 to $34.7 billion, said Vipul Shah, chairman, Gem and Jewellery Export Promotion Council (GJEPC). The Council has said the fall was due to stringent gold import policies implemented from July. This had resulted in a virtual export halt for a few months. Another reason was the 11 per cent fall in gold prices globally. By its estimates, gold content in exports was 70 tonnes in 2012-13. In 2013-14, it was slightly lower.

The diamond segment has been doing well. The financial year of 2013-14 saw an increase of 12.6 per cent in exports of cut and polished diamonds to $19.6 billion. Rough diamond imports increased 12 per cent to $16.7 billion. The export of gold jewellery and gold medallions for 2013-14 fell 39 per cent to $11.05 billion.

Shah is optimistic for 2014-15 exports. He said a 20-25 per cent growth was possible following improving market conditions in the UAE, Hong Kong and the US and expectations of relaxations in gold import policies. Many government officials have indicated norms could be relaxed as the current account deficit (reason for stringent policies) was coming under control.

Key exporting destinations for gems and jewellery in 2013-14 were the UAE (35 per cent of exports) followed by Hong Kong (28 per cent) and the US (14 per cent). Shah said, "We are looking at new markets such as West Asia, Russia, China and various initiatives."

Pankaj Parekh, vice-chairman of GJEPC, said, "The prospects for 2014-15 look bright for jewellery, specially silver, as the 80/20 scheme may get diluted. The import duty is expected to be cut as the Reserve Bank has allowed four more banks to operate in imported gold trading.”

There is also a huge demand in the global market. So, we expect a boom in silver jewellery exports, with at least 10 per cent more shipments taking place compared to 2013-14."