Owing to slowdown in global demand in major markets, including the US, gems & jewellery exports saw a 4.8 per cent decline at $22.43 billion during April-November 2017. According to Gems and Jewellery Export Promotion Council, exports stood at $23.56 billion in the year-ago period.
The drop in shipments is mainly due to negative growth in the export of gold jewellery and gold medallions and coins. As per the data, gold jewellery shipments during April-November 2017-18 declined by 3.18 per cent to $6 billion. Similarly, export of gold medallions and coins contracted by about 50 per cent.
Indian exporters are already feeling pressure on their margins because of rupee appreciation and GST issues have added to their woes. Industry experts have demanded support from the government such as to pare import duty on gold and extend the benefits of the merchandise export from India scheme (MEIS) to the sector to boost shipments. “Exports can increase only if the government brings down import duty and gives the industry an incentives package,” said an GJEPC official. “Also, we have asked an immediate resolution of GST refund issue. Blockage of working capital due to GST is also impacting exports,” he added.
The GJEPC has already made its representation to the finance and commerce ministry and is hopeful of some favourable action on the import duty front before the Union Budget for 2018-19. The labour-intensive sector contributes about 14 per cent to the country’s overall export. GJEPC had earlier urged the government to come up with a comprehensive gold policy and a single regulator for the sector to make the labour intensive gold industry organised.
However, silver jewellery exports went up 18.5 per cent to about $3 billion during the period. Shipments of cut and polished diamonds reported a growth of just 1.3 per cent. India’s main export destinations are the US, Europe, Japan and China. America accounts for about one-fourth of the country’s total gems and jewellery exports.