Gems, jewellery exports up nearly 12% in April-July period of FY17

Exports of gems and jewellery grew 11.7% to $11.4 billion during the first four months of the current fiscal, driven largely by demand in India's major markets like the United States (US).

In April-July period of the last fiscal, exports from the sector were at $10.21 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).

Gems and jewellery contribute about 14% to the country's overall exports.

The rise in April-July was mainly supported by cut and polished diamond exports. It rose to $7.25 billion during the period from $6.89 billion a year ago.

Exports of silver jewellery grew by 51% to $1.30 billion during the four months period of this fiscal.

"Demand is gradually picking up in markets like the US, which is helping in recording growth in exports in the sector," an official said.

Shipments of gold jewellery, however, contracted by 25.13% to $1 billion during the period under review, from $1.36 billion a year ago.

Exports of gold medallion and coins too dipped by 9.51% to $1.48 billion.

The government is hoping that incentives such as 3% interest subsidy and enhanced rate for duty drawback would further help contain the decline in exports.

According to GJEPC data, imports of rough diamonds rose by 13.27% to $6 billion in April-July 2016. Imports of gold bars too grew by about 40% to $1.72 billion.

After rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84% due to decline in shipments of engineering goods and petroleum products. 

Gold imports more than halved to $1.08 billion in the month.