Gems and jewellery exports in H1 up 21.5%: RBI

Gems and jewellery exports in H1 up 21.5%: RBI
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First Published: Fri, Nov 16 2007. 04 58 PM IST
Updated: Fri, Nov 16 2007. 04 58 PM IST
PTI
New Delhi: The country’s gems and jewellery exports have risen 21.5% to $9.38 billion in the first six months of the current fiscal as against $8.01 billion in the corresponding period last year.
At a time when Indian exporters are feeling the heat of a rising rupee, gems and jewellery export that recorded a poor growth of 2.7% in 2006-07 is seeing a turnaround, said a Reserve Bank of India analysis on the country’s foreign trade.
According to the RBI, the rise in exports growth is fuelled by a strong demand from all all international quarters, especially Hong Kong and US.
It further said the supply-demand imbalance is primarily responsible for sudden spurt in gold prices all over.
The rupee appreciation of more than 10% this fiscal, according to analysts, has also increased the competitiveness of gems and jewellery sector by making imports of raw materials like gold and uncut gems cheaper.
The World Gold Council (WGC) has pointed out that total gold supply for the second quarter of this year stood at 840 tonnes whereas the demand stood at 944 tonnes.
“Global demand for gold jewellery showed the strongest surge, reaching $14.5 billion in Q2 2007, a 37% increase over Q2 2006...,” added WGC.
International gold prices began to pick up from 2001 and this year saw a sharp rise, crossing $700 per ounce on 19 October. Domestic prices followed the global trend.
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First Published: Fri, Nov 16 2007. 04 58 PM IST