India Gem, Jewelry Exports Rise 5.3% .

MUMBAI -- India's gem and jewelry exports in October rose 5.3% from a year earlier to $3.55 billion, driven mainly by higher demand for gold medallions and coins, rising prices and a weak rupee.

Exports of gold medallions and coins jumped 50% to $626.21 million while gold jewelry shipments rose 14% to $827.36 million, the government-backed Gem and Jewellery Export Promotion Council said Friday.

But shipments of cut-and-polished diamonds fell about 9% to $1.89 billion. India exports 95% of the world's cut-and-polished diamonds.

Overseas spot gold prices jumped about 27% from a year earlier to $1,714 a troy ounce at the end of October as investors flocked for safety to the precious metal amid falling stock markets and concerns about a global economic crisis.

Exports have benefited also from a weak rupee, which has slipped about 11% against the U.S. dollar since October last year, the council said.

Gem and jewelry exports account for about 17% of the South Asian country's total merchandise exports. The United Arab Emirates, Hong Kong and the U.S. are India's largest export destinations.

The council, which is the largest trade body representing the industry in India, is now targeting major markets such as China, Russia and Europe for buyer-seller meetings to increase exports.

Total gem and jewelry exports during the first seven months of the fiscal year that started April 1 rose about 16% to $26.16 billion, the council said.

Fears of a slowdown in the global economy haven't hurt India's gem and jewelry exports, and total shipments will likely be in line with a previous growth forecast of 15%-16% this fiscal year, Rajiv Jain, chairman of the council, said last month.

The country exported gem and jewelry worth $43.1 billion in 2010-11.

Source : online.wsj.com