Gems and jewellery exports from India posted positive growth of 1.45% in FY09, corresponding to a sharp growth in the exports of gold jewellery.
The figures from the Gems & Jewellery Export Promotion Council (GJEPC) suggest that the exports of gems and jewellery from India slightly increased by 1.45% in FY09 to reach $21.11 Billion notwithstanding the decline in global demand, as reported by The Economic Times.
The growth in gems and jewellery exports, which is the third-largest source of foreign exchange in India, is largely accredited to a sharp 23.64% increase in gold jewellery exports that reached upto $6.85 Billion. Gold jewellery exports account for a third of India’s overall gems and jewellery exports. On the contrary, cut and polished diamonds exports that make up slightly less than two-third of the gem and jewellery exports, declined to $13 Billion, 8.24% down.
In FY09, the UAE served as the leading export destination for India, accounting for 31% of the total exports; Hong Kong followed with a share of 25%. The number three export destination, US, saw a decline in its share from 25% in FY08 to 20% in FY09.
The strong performance during the first six months of FY09 played a crucial role in this growth, as in the later half of FY09, global recession started impacting the sector and resulted in an export decline of 18.9% during the period. The decline in the second half of the fiscal year was chiefly due to the slump in demand from the US.
Industry experts believe that the first half of FY10 is unlikely to see any big upturn in the exports. However, exports may probably rise in the later half, provided there’s a rebound in the global economy.
As far as future prospects are concerned, the situation is unlikely to worsen. Presently, the entire industry is looking up to a period when the recession is at the threshold of bottoming out. Probably, things will improve towards the final quarter of the current fiscal year. However, the gem and jewellery industry in India has not set an export target for FY10 yet.
According to a Research Analyst at RNCOS, “The Indian exporters believe that the industry has already seen its worst phase. Now, the decline in overseas demand is bottoming out. But still, it will be wise enough to focus on expanding and tapping new export destinations in order to increase profit.”
Related Market Research Reports:
Indian Gems and Jewellery Market - Future Prospects to 2011
Indian Cosmetic Sector Analysis (2009-2012)
Asian Convenience Store Market Forecast to 2010
