Exports of gems and jewellery between April 2011 and January 2012 grew by 14.3 per cent in value terms, helped mainly by strong overseas sales of gold jewellery and coins, data from the Gem and Jewellery Export Promotion Council showed.
The country exported gems and jewellery worth Rs 1,68,204 crore during the first 10 months of the current financial year (2011-12). In January, exports grew by 9 per cent to Rs 16,858.75 crore.
But exports of cut and polished diamonds during the ten-month period were down 3.6 per cent in rupee terms at Rs 92,904.5 crore. In volume terms, exports were down at 443.15 lakh carats compared with 510.57 lakh carats exported in the same period last year, GJEPC data showed.
The decline in diamond exports is possibly due to the 2 per cent Customs duty on imports of cut and polished diamonds, Mr Sanjay Kothari, Vice Chairman, GJEPC, said.
The Government had imposed a 2 per cent Customs duty on imports of cut and polished diamonds in early January. This move was primarily aimed at increasing capacity utilisation in diamond units and manufacture of value-added products.
During April-January, imports of cut and polished diamonds fell by nearly 12 per cent to Rs 61,000 crore. The decline was mainly in Surat.
Gold jewellery exports continued their robust growth with overseas sales rising by 37 per cent to Rs 36,161.5 crore during April-January. Gold jewellery exports grew by 45 per cent in January alone to Rs 3,877 crore. Exports of gold medallions and coins saw a 59 per cent growth in April-January period at Rs 27,565.4 crore.
Demand for diamonds
The country's exports of coloured gemstones and silver jewellery continued to remain robust during the period.
Rough diamond imports increased by 31.5 per cent in rupee terms to Rs 58,104.7 crore during the ten months ending January. But exports were down in volume terms at 1,038.43 lakh carats compared with 1,299.97 lakh carats in the year-ago period.
Demand in the US is improving considerably, Mr Kothari said. The US is the largest market for diamonds but purchases had eased following the slowdown in the country's economy.