India's gems and jewellery exports fell more than nine per cent to $39.03 billion for the year 2012-13 compared to $43.09 billion in the previous year. The fall is due to weak demand from the developed world, Gems and Jewellery Export Promotion Council (GJEPC) said on Tuesday. However, the sector will see a turnaround in 2013-14.
"The outlook for 2013-14 looks positive with an estimated growth of 12-15 per cent. The US and Japanese jewellery markets will bounce back with an estimated five per cent growth, while China will remain stable at 10 per cent growth," said Vipul Shah, chairman of the council. Gems and jewellery make up for about 14 per cent of India's total exports.
It may be recalled that the Prime Minister's Economic Advisory Council also said last week that gem and jewellery exports will increase 12 per cent in 2013-14 which will help curb the current account deficit. Falling gold prices will be another booster for jewellery demand.
GJEPC today announced the annual performance for the Indian gems and jewellery sector.
During 2012-13, imports of rough diamonds went up by 12.65 per cent indicating an increase in cutting, polishing and other manufacturing activities in India. However, import of cut and polished diamonds fell 61.45 per cent, indicating a decline in India's foreign exchange spending.
Commenting on the annual results, Shah said, "At a time when the industry is going through a challenging period, government regulations related to the reintroduction of bonded warehouse facility for diamond exporters and revision in duty drawback rate facility for gold jewellery exporters has helped strengthen the industry."
Interestingly, he said there are several initiatives that would materialise during the year. These include proposals for regulatory measures such as introduction of consignment imports of diamonds, start of rough diamond tenders and auctions in India, formation of committee for looking into lending norms for banks to the diamond and jewellery sector.