Mumbai: Exports of gold jewellery from India rose for a second straight month in September, an industry body said on Friday, and was set to gain momentum going forward as supply pressures had been eased for exporters before the peak Christmas season in the U.S.
India is trying to reduce its current account deficit and the government has brought in measures to restrict imports of gold for domestic use, the second-biggest import after oil, which has affected the jewellery sector.
The measures included a rule that 20 percent of all the gold shipped in must be turned around and sold for export as jewellery. However, confusion over how the rule would work virtually stopped imports from the end of July to mid-September.
Jewellery exports rose 16.5 percent on month in value terms to $653.90 million in September, the Gems and Jewellery Export Promotion Council (GJEPC) said in a statement.
"There has been an increase in orders from the U.S. and this trend should sustain in coming months," said Pankaj Kumar Parekh, vice chairman at GJEPC, adding "the commencement of supply of gold is helping exporters in a big way."