The Gem & Jewellery Export Promotion Council (GJEPC) sponsored by the Ministry of Commerce & Industry, Government of India (GoI) released annual export performance report for FY2016 in the presence of Chairman Mr. Praveenshankar Pandya, Vice Chairman Mr. Russell Mehta and other Directors.
Other exports (such as pearls, synthetic stones, costume and fashion jewellery, etc.) increased by 49.66% in FY16.
In FY16, gems & jewellery exports of USD 38,599.18 mn accounted for 14.78% (up FY15) of the country’s cumulative exports of US$ 261,136.80 million (overall exports were down 15.85% as compared to FY15) ranking the gems & jewellery sector as one of the leading foreign exchange earners for the country.
Net import of rough diamonds (quantity in lakh carats) dropped 16.17% in FY16 to USD 14,047.81 mn as compared to USD 16,757.37 mn in FY15. Net imports of cut and polished diamonds dropped 58.26% in FY16 to USD 2,771.40 mn as compared to USD 6,640.14 mn in FY15.
Gold jewellery exports drops 13.07%; imports of rough diamonds drops 16.17%
Mr. Praveenshankar Pandya, Chairman, GJEPC, said, “For the first time ever, the Export of Cut & Polished diamonds, has shown a huge decline. Weak international demand and high rough diamond prices have led to the absence of Profitability. Slow Demand has led to the fall in Rough Diamond Import by 16% in FY 2015-16 for the first time. Rough Prices are edging upwards, the sluggish global demand has created inventory pile up. Increased Financial Cost or inventory carrying cost has become unbearable. Interest subvention is the need of the hour!
However, export to the US is showing an upward trend but the only deterrent is the DUTY in the Region. Inclusion of gems & jewellery business in Merchandise Exports from India Scheme (MEIS) will bring respite and boost trade to the Region”.
