New Delhi: India’s gems and jewellery exports continued to shine for the fourth consecutive month with consignments growing by an impressive annual 55% to $2.2 billion in February, highlighting demand pickup in the western markets.
Number one contributor to the country’s export basket, gems and jewellery exporters have seen reversal of fortunes since November 2009, after almost a year of downturn which followed recession in several key markets in the US and Europe.
Since the situation had deteriorated significantly last year, the rebound in February 2010, looks impressive because of the small volumes (low-base effect) in 2009, chairman of the Gems and Jewellery Export Promotion Council Basant Mehta said.
Mehta said while the prospects are likely to improve further in the next two-three months when traders would start booking orders for Christmas from the west, the new markets of China and Russia are also helping the exporters.
“There has been good demand, mainly for diamonds and diamond studded gold jewellery, from new markets like China and Russia,” he said.
Segments like coloured gemstones, cut and polished diamonds and gold jewellery registered robust growth between 37% and 90%.
The gems and jewellery exports accounted for about 15% in the country’s total exports worth $185 billion in 2008-09.
The UAE is the main destination for India’s gems and jewellery, accounting for 31% of the total exports, followed by Hong Kong and the US.
The gems and jewellery exports sector employs about 1.3 million people.