The slide in India?s gems and jewellery exports-thatdropped by almost 35% (in dollar terms) in April -seem to have been arrested in May, making industry observers hopeful that if the current trend continues, exports could revive by the second half of 2009.
?Though total exports of cut & polished diamonds and gold jewellery have come down during the first two months of the current fiscal, but there is some improvement in overall supply of rough diamonds and exporters? buying for jewellery export in the country. Overall scenario in exports and imports during May has improved compared to April figures,? Vasant Mehta, Chairman Gems and Jewellery Export Promotion Council (GJEPC) told FE.
Total exports were down 25.98% (in dollar term) in May compared to 34.25% fell in April while total imports were also fell 30% (in dollar term) in May compared to 43.74% in April month.
?If the current situation continues, I think there is some improvement in the current month?s figures and also expect slight
recovery in overall exports in second half of 2009,? he said.
Although, total exports in April and May 2009 was still less than last year, but observers feel that there may be a turnaround if US and European economies recover because these countries buy heavily during their peak festival months of October to January .
Total exports of gold jewellery (SEZ, EPZ and DTA) and cut & polished diamonds from the country in the first two months fell 7.29% in rupee term to Rs 14,636.99 crores and 25.98 % in dollar term to $2,930 million over the same period last year.
Exports of cut and polished diamonds also fell 17.6% to $1,676 million while imports of rough diamonds fell 31% to $1,064.36 million, the latest data released by the GJEPC showed.
The threat from the growing influence of a highly competitive China; worldwide fall in demand; the increasing unemployment of its highly skilled and world-class workforce; and the volatility of gold prices are the major concerns for the sector, he added.
The recent recession has rendered over 3-4 lakh workers jobless with many hanging up their tools to pursue other avenues, sources said.
GJEPC has proposed the setting up of a long-term welfare fund jointly with the government, with the aim of providing these workers with employment guarantees, training and other benefits.