India to miss FY12 jewellery trade target Close.

India's jewellery trade is likely to miss its FY12 target of Rs 50 billion as a recent three-week strike by gold jewellers against increase in taxes crippled business.

The industry, which includes diamonds, gold and silver jewellery and coloured stones, will fall short by 10% to settle at $45 billion. Gold jewellers called off their strike on March 17 which was in protest against government's levy of 1% excise duty on non-branded jewellery and doubling of customs duty of 2% and 4% on standard and non-standard gold.

"We had a tough time last month on account of duty increases by government which will impact our overall business including exports," said Rajiv Jain, chairman of Gems and Jewellery Export Promotion Council, the apex body of gold jewellery and diamond trade. The council was expecting to grow at 15% from $43 billion last year to achieve the ambitious $50 billion mark in FY12.

"More than Rs 20,000 crore worth of business was impacted across the country during the strike," said Bachhraj Bamalwa, chairman of All India Gems and Jewellery Trade Federation.

Exporters in gold jewellery and diamonds, which account for $14 billion and $20 billion respectively, have been foraying into new markets to expand their business.

As per GJEPC, India's coloured gemstones exports went up by 14% to $309 million during April 2011 to February 2012.

Source : economictimes.indiatimes.com