Gems, jewellery exports up 1.45%

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Mumbai: Despite the global economic downturn, India’s gems and jewellery exports have managed to retain their shine by rising by 1.45% in 2008-09.

Precious jewellery exports rose marginally to $21.11 billion in 2008-09 from $20.81 billion last year.

“The growth in the sector was primarily driven by gold jewellery (exports), which registered an increase of 23.64% in FY’09,” Gems and Jewellery Export Promotion Council chairman Vasant Mehta told reporters here after releasing the annual exports and import figures.

The sector, which employs over three million people, witnessed a decline of 18.88% in exports in the second half of the last fiscal as global demand for the precious items took a severe beating since September 2008.

Mehta said that as per the data, during September 2008 and March 2009, 1.75 lakh to 2 lakh people have been laid off due to the slowdown in demand mainly in the US. Surat in Gujarat, which is the hub of gems and jewellery trade in India, alone has lost thousands of jobs due to the closing down of units, he said.

The meltdown has resulted into a decline and cancellation of orders from the US and other markets.

“The industry has undergone challenging times in 2008-09,” Mehta said.

On the revival of the sector, he said that in the second half of 2009 the condition may improve.

“By July-August 2009, we hope the market will improve,” Mehta said.

Cut and polished diamonds witnessed a decline of 8.24% to $13.02 billion in the last fiscal from $14.19 billion in 2007-08.

In rupee terms the sector shows a minimal increase of 2.68% with exports rising from Rs 57,117.17 crore in 2007-08 to Rs 58,649.44 crore in 2008-09.

Volume of cut and polished diamonds exported stood at 40.2 million carats in April 2008 – March 2009 as compared to 43 million carats in the same period last year. Coloured gemstone exports also decreased by 3.68% in dollar terms in 2008-09 with the sector witnessing a decline from $ 276.11 million in 2007-08 to $ 265.95 million in 2008-09, however, there was an increase of 7.7% in rupee terms with exports increasing from Rs 1,111.05 crore in 2007-08 to Rs 1,197.55 crore.

The gems and jewellery accounted for 13% of the India’s total merchandise exports.