The gems and jewellery exports are likely to grow by up to 5 per cent this financial year, mainly aided by improving demand in the US market during the upcoming Christmas season, an industry body said Monday.
It had declined by 5 per cent to $40.97 billion in FY18, from $43.16 billion in FY17.
The Gems and Jewellery Export Promotion Council (GJEPC) in a statement said India's exports of gems and jewellery products is expected to be encouraging in the US market during the upcoming Christmas time majorly backed by rising GDP growth, employment rate and private consumption expenditure in the country.
"The overall exports in FY19 is expected to be from flat to 5 per cent due to the improving demand in the US.
Otherwise the exports would have been in the negative as the Gulf markets are badly affected," GJEPC vice-chairman Colin Shah told PTI.
This would be in line with positive growth in exports of cut and polished diamonds and gold jewellery to the US during April-October, the statement said.
Exports of cut and polished diamonds grew by around 22.10 per cent year-on-year during April-October 2018 to $5.43 billion, from $4.45 billion in April-October 2017, according to GJEPC.
Exports of gold jewellery to the US market also witnessed a 13.13 per cent growth to $981.85 million in April-October 2018, from $867.87 million a year ago.
Followed by positive consumer demand for jewellery products, US imports like cut and polished diamonds recorded a jump of 14.13 per cent to $18.55 billion in April-October 2018, from $16.26 billion in the year-ago period.
Rough diamond imports in FY18 rose to $18.9 billion, from $17.08 billion in 2016-17, while cut and polished diamond exports grew to $23.7 billion, from $22.8 billion.