Gems and jewellery exports of India slipped 22% to $2.6 billion in the month of April 2018, from the exports of $3.31 billion in April 2017, due to slowdown in demand in major markets including the UAE. According to the Gem and Jewellery Export Promotion Council (GJEPC) of India, the drop in outbound shipments in April is mainly due to negative growth in the export of silver jewellery, gold medallions and coins along with a sharp rise in the return of consignments.
As per the data, silver jewellery shipments declined 95.5% to $34.19 million in April, while export of gold medallions and coins contracted by 87.6% during the month under review. However, total gold jewellery shipments jumped 49% to $913 million during the period and shipments of cut and polished diamonds too grew 14% in the month under review.
During April 2018, consignments worth $545.3 million were returned compared with $533 million in April 2017. On the other hand, imports contracted by 24% to $2.35 billion in the month under review. Rough diamonds imports dipped around 13% during the month.
The GJEPC of India has said that major export destinations for the sector include Hong Kong, the UAE and the US. The three countries account for over 80% of the country's total exports of gems and jewellery and gems and jewellery contributes nearly 7% to India's GDP and over 15% to the merchandise exports. The industry has urged bankers not to reduce their current credit limits as this would hamper and erode exports and employment creation.