Despite global financial crisis, Indian gold and diamond import and export is climbing up, primarily due to wedding and festive season.
According to Gem and Jewellery Export Promotion Council, regardless of the worldwide economic crunch, import and export of diamonds and gold in India continues to record growth, as reported by CommodityOnline.
In September 2008, polished diamond exports from India saw a rise of 17.65% as compared to September 2007, totaling to $1.431 Billion (Rs 61.732 Billion). Further, imports of polished diamonds reached $726.1 Million (Rs 31.77 Billion) by increasing approx 112%.
Moreover, gold bar imports went up to $9.65 Billion (Rs 717 Crore) in September 2008 from $2.90 Billion (Rs 216 Crore) in August 2008. Imports of rough diamonds recorded an increase of 38% to reach $860.9 Million from $623.2 Million during the same period.
Soaring demand of diamonds and gold in festive season pushed this significant growth in Indian trade. Diwali and the ongoing wedding season boosted the purchase of Jewellery in India. This growth can also be attributed to the increase in trading activities of India.
Furthermore, the global decline in the prices of gold and diamond, and increasing consumer expenditure also increased the demand of these precious commodities. The firm gain of Indian rupee over the US dollar also supported the industry.
Moreover, gold is certainly the best thing to invest in at this time when the world is facing the problem of financial crisis. So with the increasing interest of investors in gold, India’s gold imports are predicted to ascend during the period spanning from October to December 2008.
According to a Senior Research Analyst at RNCOS, “The trading of gold and diamond is speeding up in India because of increasing demand. Thus, investors are expecting to generate huge profits. So, at this time of economic instability, gold and diamond market seems a safer option to invest in.”
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