MUMBAI: India’s gems and jewellery exports witnessed a 5.30 per cent drop in FY16 led by a sharp decline in the exports of cut and polished diamonds amidst a slowdown in global demand.
However, silver jewellery managed to buck the broader weakness in exports growing 54.41 per cent during the same period. The total gems and jewellery exports fell to Rs 2.09 lakh crore in FY 16 as compared to Rs 2.21 lakh crore in FY15. While the exports of cut and polished diamonds dropped 7.47 per cent, gold jewellery exports fell 6.65 per cent during the last fiscal.
“Weak global demand and high rough diamond prices have led to the absence of profitability. Slow demand has led to the fall in rough diamond imports by 16 per cent in FY 16. Rough diamond prices are edging upwards, while the sluggish global demand has created inventory pile up,” said Praveenshankar Pandya, chairman, Gems and Jewellery Ex-port Promotion Council.
