New Delhi: Gems and Jewellery exports declined by 14.5 percent to USD 25.95 billion during the first ten months of the current fiscal due to slowdown in global demand.
In the April-January period of last fiscal, the exports stood at USD 30.35 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).
Besides global slowdown, the rejection of consignments is one of the reasons for dip in the value of exports.
During the ten-month period of the current fiscal, consignments worth USD 5.15 billion were returned as compared to USD 2.73 billion during the same period previous year.
The sector contributes about 14 percent to the country’s overall exports.
Exports of cut and polished diamonds fell to USD 15.83 billion during the ten-month period from USD 19.11 billion a year ago.
Similarly, shipments of gold jewellery contracted to USD 3.22 billion from USD 5.54 billion during April 2014 – January 2015.
Exports of gold medallion and coins, however, increased to USD 4.50 billion during the ten-month period of this fiscal from USD 2.03 billion in the same period previous fiscal.
Dip in gems and jewellery exports has also impacted the overall outbound shipments of the country.
Exports dipped for the fourteenth month in a row, down 13.6 percent in January to USD 21 billion due to fall in shipments of petroleum and engineering goods, although trade deficit showed improvement.
The government is hopeful that incentives such as 3 percent interest subsidy and enhanced rate for duty drawback could help contain the decline.