Thanksgiving, Christmas to cheer gems, jewellery exporters

The forthcoming festive season, beginning with Thanksgiving, is likely to bring in some cheer for the country’s gems and jewellery exporters. According to the gem and jewellery export promotion council (GJEPC), exports are likely to increase sharply during the period due to rise in consumer demand.

During the April-October period this year, gems and jewellery worth $15,131.34 million were exported, which was 6.95 per cent less as compared to the same period a year ago.

“In any given year, around 40 per cent of the sales happen between Thanksgiving and Christmas. This time, we are looking at exceeding 2007-08 figures,” executive director of GJEPC Sabyasachi Ray said.

 

Exports of gems and jewellery, which account for 15.13 per cent of the country’s total merchandise exports, had been severely affected due to the global economic meltdown. Emphasising the need to continue the fiscal measures adopted by the government, exporters said banks have started lending again and have even increase the credit period. “Domestic demand had also been robust due to a bumper sale during Diwali. There was a frenzy of buying that time,” Ray added.

Besides fiscal reforms, the government announced package for the sector in the foreign trade policy (FTP) of 2009-14. The measures included neutralising duty on gold jewellery exports, thereby allowing duty drawback. Also, the limit for personal carriage was increased from $2 million to $5 million.