Jewellery exports glitter, nearly double in April

India's gem and jewellery exports almost doubled to $2.56 billion in April over the year-ago period, mainly due to rising demand in the US and UAE markets.

The exports in the opening month of the current fiscal expanded by 95 per cent. In April 2009, the shipments were valued at $1.31 billion.

"The exporters are getting good orders from markets like the US and UAE. Jewellery exports are growing in line with India's overall exports," Federation of Indian Export Organisation President A Sakthivel said.

Gems and jewellery, the number one contributor to the country's export basket (at about 16 per cent), saw a reversal in its fortunes after demand revived in the Western markets from November 2009. Exports were hampered severely due to the economic meltdown, which had started in September 2008.

However, with the recovery in global markets, the demand for gems and jewellery has seen a rise not only in traditional markets, but also new ones like Russia, China and Latin America.

Exports of cut and polished diamonds grew by 115 per cent in April, followed by gold jewellery at 20 per cent and coloured gemstones at 9 per cent, compared to the same period last fiscal.

During 2009-10, India's gems and jewellery exports grew by 16 per cent to USD 28.41 billion, compared to the previous fiscal.

The UAE is the main destination for Indian gems and jewellery, accounting for 31 per cent of the total exports, followed by Hong Kong and the US.

The gems and jewellery exports sector employs about 1.3 million people.