Mumbai: The country’s gems and jewellery exports have posted a 12.89% and 21.58% growth in rupee and dollar terms respectively in the first quarter ended 30 June, despite a sharp rupee appreciation in the last six months.
According to figures released by the Gems and Jewellery Export Promotion Council (GJEPC) here, provisional net exports stood at Rs18,398.55 crore in April-June this year against Rs16,298 crore in the same period last year.
The gems and jewellery exports escaped the rupee appreciation due to several factors. The fact that this sector is import-centric actually helped, said Sanjay Kothari, chairman of GJEPC, adding that as much as 75% of the raw material needed is imported. India is the largest importer of the rough diamonds.
Besides, unlike sectors such as textiles and leather which incurred higher input costs due to rising rupee, the remittances and payments by the industry are done in dollars, thus avoiding perils of rupee appreciation.
The gold prices have significantly gone up compared to last year’s prices too, affecting the prices gems and jewellery.
Exports in dollar terms improved from $3,623.12 million to $4,405.08 million in the quarter ended June 2007.
Gold jewellery exports, however, remained stagnant at Rs3,034.43 crore against Rs3,020.44 crore. Exports of gold jewellery from export promotion zones rose from Rs1,483.1 crore to Rs2,243.60 crore in Q1 FY 2008.
Exports of cut and polished diamonds in the quarter were Rs12,056.46 crore against Rs10,810.17 crore a year ago, contributing significantly to the growth of the sector.
Coloured gemstones showed a marginal improvement at Rs223.52 crore (Rs222.90 crore), while exports of non-gold jewellery, pearls and synthetic stones jumped 80% at Rs304.95 crore (Rs 169.33 crore).
Exports of rough diamonds, however, declined by 9.55% at Rs535.58 crore in Q1 FY08 as against Rs592.16 crore in the same period last year.
Rough diamonds exports in dollar terms declined by 2.59% at $128.23 million as against $131.64 million, the GJEPC said.
The country has imported rough diamonds worth Rs10,435.56 crore in the quarter against Rs9,852.72 crore in the same period last year.
Gold bar imports are down 29.56% to Rs 1,122.16 crore (Rs1,593.05 crore).
The imports of cut and polished diamonds have showed a sharp jump of 84.32% at Rs3,919.62 crore as against Rs2,126.56 crore in the year-ago period.
Overall net imports of gem and jewellery rose 16.21% to Rs16,449.04 crore during the quarter as against Rs14,154.59 crore in Q1 of FY07.
In FY07, gem and jewellery exports amounted to Rs77,180.28 crore ($17.1 billion).