Gems, jewellery exports lose lustre in FY12.

Gems and jewellery exports dipped marginally to $42.84 billion in 2011-12 owing to weak demand in western markets like the US and Europe, Gems and Jewellery Export Promotion Council said on Monday.

The exports were $42.99 billion in the previous year.

"The exports remained flat in the last fiscal due to less number of orders from main markets like the US and Europe which are facing sluggish economic growth," council's Chairman Rajiv Jain said.

The UAE is the main export destination for the country's gems and jewellery, followed by the US, Hong Kong and Europe.

However, the council had set a target of $48 billion for 2011-12.

Besides, Jain said the imposition of 2 per cent import duty on diamonds has affected the re-exports of value-added items like diamond-studded jewellery.

India imports large quantity of rough diamonds. In January, the government had imposed import duty on diamonds.

After imposition of the duty, exports of cut and polished diamonds started falling. In January, 2012, the shipments declined by 19 per cent, followed by 54 per cent in February and 17 per cent drop in March, Jain said.

The gems and jewellery exports sector employs about 1.3 million people.

Source : profit.ndtv.com