MUMBAI India's gem and jewelry exports in September rose about 22% from a year earlier to $4.35 billion, driven mainly by higher investment demand for gold jewelry, medallions and coins.
Exports of gold medallions and coins from India jumped 62% to $676.58 million while shipments of gold jewelry surged 58% to $884.34 million, the government-backed Gem and Jewellery Export Promotion Council said Monday.
Overseas spot gold prices hit a record high of $1,920.94 a troy ounce on Sept. 6 as investors flocked for safety to the precious metal amid plunging stock markets.
India exported cut-and-polished diamonds worth $2.49 billion in September, up 4% from $2.40 billion a year earlier. India exports 95% of the world's cut-and-polished diamonds.
The United Arab Emirates, Hong Kong and the U.S. are India's largest export destinations for gem and jewelry, which account for about 17% of the South Asian country's total merchandise exports.
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.
Fears of a slowdown in the global economy haven't hurt India's gem and jewelry exports, and sales will likely be in line with a previous growth forecast of 15%-16% this fiscal year, Rajiv Jain, chairman of the council, said earlier this month.
The country exported gem and jewelry worth $43.1 billion in 2010-11.
Total gem and jewelry exports during the first six months of this fiscal year that started April 1 rose about 17% to $22.58 billion, the council said.
Source : online.wsj.com