Gems & Jewellery exports dip 14% during Apr-Dec this fiscal

Gems and Jewellery exports declined by over 14 per cent year-on-year to USD 23.29 billion during April-December period this fiscal due to slowdown in global demand.
In April-December 2014, the exports stood at USD 27.16 billion, according to data from Gems and Jewellery Export Promotion Council (GJEPC).
Besides, rejection of consignments is one of the reasons for dip in value of exports.
During the nine-month period of the current fiscal, consignments worth USD 4.81 billion were returned as compared to USD 2.49 billion during the same period last year.
The sector contributes about 14 per cent to the country's total exports.

The industry is seeking a cut in gold import duty to ensure adequate supply of the metal and help meet export demand for jewellery.

To check high current account deficit, the government had hiked import duty on gold to 10 per cent.
According to the data, exports of cut and polished diamonds fell to USD 14.78 billion in April-December 2015 from USD 17.32 billion in the same period last year.
Similarly, shipments of gold jewellery contracted to USD 2.87 billion from USD 5.13 billion during April-December 2014.
Exports of gold medallion and coins, however, increased to USD 3.7 billion during the nine month period of this fiscal from USD 1.30 billion in the same period last year.

Overall, India's exports remained in the negative territory for the 13th month in a row. It contracted 14.75 per cent in December to USD 22.2 billion due to a steep fall in shipment of petroleum products and engineering goods.
The government is hopeful that incentives such as 3 per cent interest subsidy and enhanced rate for duty drawback could help contain the decline.