The gems and jewellery exports have declined by 8.67% to Rs 2,64,130.64 crore in financial year 2017-18. As per data compiled by the industry body the Gem and Jewellery Export Promotion Council (GJEPC), this decline is mainly due to drop in demand from the UAE. The exports stood at Rs 2,89,207.47 crore in 2016-17.
The demand from the UAE declined by 27% to Rs 66,862.98 crore during FY18, compared with Rs 91,458.57 crore in the previous year, on a 5% value added tax (VAT) imposed in the UAE in January. Major export destinations for the gems and jewellery sector in 2017-18 were Hong Kong with 33%, followed by the UAE with 25% and the US at 23%.
The exports in the sector was primarily driven by the cut and polished diamonds (CPD) segment, which witnessed an increase of 0.18% to Rs 1,52,961.38 crore in FY18, compared with Rs 1,52,682.59 crore in FY17.