Exports of Gems and jewelry has contracted by 0.75% to $13.18 billion for the period April-August of the current fiscal.
The decline has been reported to a tepid demand in major international markets. Demand has also shrunk in the categories of silver jewelry, gold medallions and coins. The rise in return of shipments has also been factored as a reason for the slump.
Data released by the Commerce Ministry suggests that exports of Silver Jewelry dipped 88% to $239 million while exports of Gold coins and medallions posted a decline of 87.2%. This in the fiscal year April- August 2018.
Rough diamonds too exhibited a decline of 5%.
However on the brighter side, exports of polished and cut diamonds registered a growth of 11.5% to $10.31 billion in the first five months of the fiscal.
Exports of finished gold jewelry too picked up momentum. Gold jewellery shipments nearly doubled to $5.11 billion between the April-August fiscal.
For all the growth recorded by finished Gold and Diamond jewelry exports, return consignments reached a value of $3.5 billion. During the previous comparison year of April-August 2017, return shipments were reported at $3 billion.
Exports of Jewelry (both Gold and Diamond) is considered labour-intensive and contributing at least 14% to India's overall export economy. The industry employs artisans and designers. There are organisations and jewelers based in Surat and West Bengal that produce some of the finest jewelry designs that get exported.
India's imports too showed a dip. Imports of Gold and gems has been reported at $12 billion in Apr-Aug'17 (a decline of 4.27% from the previous year).
Imports of rough diamonds was down by 7% but imports of Gold bars nearly doubled.
Importers procured $1.3 billion of Gold bars in Apr-Aug'17, however this fiscal year, imports stood at $3.7 billion.
One of the reasons could be the sudden fall of Gold in international markets.
The yellow metal has been range bound between $1160-1190 per ounce in the past month.
However, between April to September 2017 Gold in bullion markets was trading in a range of $1290-1355 per ounce.
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