Apex body The Gem and Jewellery Export Promotion Council (GJEPC) sponsored by the Ministry of Commerce & Industry, Government of India (GoI) has released annual export performance report for FY2016 in the presence of Chairman Praveenshankar Pandya, Vice Chairman Russell Mehta and other Directors.
According to the report, India’s Exports of gems and jewellery dropped 3.46 per cent in FY16 to $38,599.18 mn as compared to $39,980.63 mn in FY15. Gross exports of cut and polished diamonds in FY2016 dropped 13.66 per cent to $19,996.06 million as compared to $23,160.18 mn in FY15. Exports of gold jewellery in FY16 dropped 13.07 per cent to $8,609.25 mn as compared to $9,903.61 mn in FY15.
Exports of coloured gemstones dropped 4.43 per cent in FY16 to $433.18 mn as compared to $453.25 mn in FY15. Other exports such as pearls, synthetic stones, costume and fashion jewellery, etc. increased by 49.66 per cent in FY16.
In FY16, gems and jewellery exports of $38,599.18 mn accounted for 14.78 per cent of the country’s cumulative exports of $261,136.80 million ranking the gems & jewellery sector as one of the leading foreign exchange earners for the country. However, this is the fifth successive year wherein gross gems and jewellery exports have been falling; and the first time in the last six years that the exports of cut and polished diamonds has fallen to below USD 20,000 mn levels.
Net import of rough diamonds dropped 16.17 per cent in FY16 to $14,047.81 mn as compared to $16,757.37 mn in FY15. Net imports of cut and polished diamonds dropped 58.26 per cent in FY16 to $2,771.40 mn as compared to $6,640.14 mn in FY15.
Chairman, GJEPC, Praveenshankar Pandya said, “For the first time ever, the export of cut and polished diamonds, has shown a huge decline of 13 per cent during April- March 2015-16, in comparison to the same period last year. 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 per cent 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 and jewellery business in Merchandise Exports from India Scheme (MEIS) will bring respite and boost trade to the Region”, Pandya added.
Cut and polished diamonds accounted for 52 per cent of the gross gems and jewellery exports in FY16 while gold jewellery exports accounted for 22 per cent of the gross gems and jewellery exports. Silver jewellery accounted for 8 per cent of gross exports respectively.