Gems and jewellery exports rise 11.7 percentage.

KOCHI: Even as domestic gold consumption moves southwards, exports are moving exactly the opposite in India.

During the first four months of 2016-17 exports of gems and jewellery grew by 11.7 per cent to $ 11.4 billion (around `76,380 crore), driven largely by demand in India’s major markets like the US. Exports were worth $ 10.21 billion (`68,407 crore) during the same period last year, according to the data from Gems and Jewellery Export Promotion Council (GJEPC). Gems and jewellery contribute about 14 per cent to the country’s overall exports.

The rise in April-July was mainly supported by cut and polished diamond exports. It rose to $ 7.25 billion during the period from $ 6.89 billion a year ago. Exports of silver jewellery grew by 51 per cent to $ 1.30 billion during the April-July period. “Demand is gradually picking up in markets like the US, which is helping in recording growth in exports in the sector,” an official said.

According to GJEPC data, imports of rough diamonds rose by 13.27 per cent to $ 6 billion in April-July 2016. Imports of gold bars too grew by about 40 per cent to $ 1.72 billion. However shipments of gold jewellery contracted by 25.13 per cent to $1 billion during the period, from $ 1.36 billion a year ago.

The government is hoping that incentives such as three per cent interest subsidy and other incentives would help contain the decline in exports.

Source : newindianexpress.com