Gems, jewellery export up 6.6% in May on sliding Re

India's exports of gems and jewellery rose a marginal 6.6 per cent in rupee terms in May on rising gold and diamond prices; and a depreciating rupee. In dollar terms, however, the export declined by 12.1 per cent in the month.

Data compiled by the apex trade body, the Gems & Jewellery Export Promotion Council (GJEPC), showed that overall export of gold and diamond ornaments was Rs 17,819 crore in May against Rs 16,721 crore in the corresponding month of the previous year. In dollar terms, however,total shipment fell to $3,271 million in May as compared to $3,724 million in the comparable month last year.

While precious metals’ prices were $1,500-1,600 an oz globally, it shot up in India due to the rupee’s slide. From 44.9 to a dollar in May 2011, it plunged to 54.47 in May 2012.

"The US market which constitutes 38 per cent of world jewellery consumption, has signs of revival. Consumers' footfalls have increased in recent months. In the recent JCK Las Vegas jewellery show, consumers were inquisitive about purchasing new pieces of ornaments," said Rajiv Jain,chairman of GJEPC.

European and other key markets, however, remained low due to the ongoing weakening economic sentiment in the euro zone. India's share in overall US jewellery import is 40-42 per cent.

In the first two months of the current financial year, overall jewellery exports rose a marginal 0.3 per cent in rupee terms at Rs 31,228 crore as compared to Rs 31,130 crore in the same period last year. In dollar terms, the plunge was from $5,860 million from $6,985 million in the same period last year, a decline of 15.9 per cent.

Export of cut and polished diamonds fell 32.6 per cent to Rs 6,781 crore in May from Rs 10,060 crore in the same period last year. In dollar terms, the plunged was 44.4 per cent to $1,245 million this May.

Import of rough diamonds declined a marginal three per cent to Rs 6,182 crore in May, as against Rs 6,377 crore in the same month last year. In dollar terms, overall import of rough diamonds fell 20 per cent to $1,135 million from $1,420 million in May 2011.