SURAT: While the small and medium diamantaires have been hit hard in the last three months due to demonetization, there seems to be no effect as far as exports of polished diamonds from India is concerned.
According to the latest figures published by the Gems and Jewellery Export Promotion Council (GJEPC), exports of polished diamonds in December rose by almost 25% at Rs 10,000 crore while that of gold jewellery increased by 35% at Rs 6,000 crore compared to Rs 8,000 crore and Rs 4,400 crore respectively in the same month last year.
Overall exports of polished diamonds from April 2016 to December 2016 grew by 17% at Rs 1,13,171 crore compared to Rs 96,600 crore during the same period in previous month.
The increase in exports is attributed to high demand of diamond jewellery from US, China and the Middle East.
India exports about $21 billion worth for polished diamonds to the world including US.
Sources said that the increase in the polished diamonds and jewellery exports could be attributed to the American consumers. During the Christmas season, the Americans bought diamond jewellery to celebrate the occasion.
In the last quarter, exports of polished diamonds from India to US increased by 31% to $1.8 billion compared to $1.3 billion in the previous year. Overall, exports of gems and jewellery from India to US rose by 8.5% at $ 2.3 billion.
"We see President Donald Trump as a dynamic leader and we can only hope that the new policies would spur the diamond demand in US," said a diamond baron.
GJEPC chairman, Praveen Shanker Pandya, said, "The increase in exports of polished diamonds and jewellery is seen as a seasonal trend. We are getting positive signals from our buyers in US about the upcoming policies to be announced by the Trump administration."
Aniruddha Lidbide,, a diamond trade analyst, added, "The real figures will reflect in January and February. The cutting and polishing of diamonds in Surat factories has been affected due to demonetization. Many small and medium units are yet to reopen. This will directly reflect in the coming months."
Source: timesofindia.indiatimes.com