Gems, jewellery exports decline 39 pc to USD 2.7 bn in Feb

NEW DELHI: Gems and jewellery exports contracted steeply by 39 per cent year-on-year to USD 2.7 billion in February due to sluggish demand in western markets like Europe and the US, the Gems and Jewellery Export Promotion Council said today.

In February last year, the exports stood at USD 4.5 billion, according to the data provided by the Gems and Jewellery Export Promotion Council (GJEPC).

"We are getting less orders this year due to sluggish demand in European and American markets," GJEPC Chairman Rajiv Jain said adding this trend is likely to continue for the next few months.

Besides this, the major markets for the country's jewellery outward shipments include the UAE and Hong Kong.

Among the segments that registered maximum decline include cut and polished diamonds which witnessed a drop of 53 per cent. Gold jewellery exports dropped by 30 per cent and coloured gemstones by 4 per cent during the period under review.

During April-February 2011-12, gems and jewellery exports grew by 4 per cent year-on-year to USD 38 billion.

To reduce dependence on traditional markets, exporters are exploring new markets like Latin America, Africa and Russia.

India mainly imports gold and rough diamonds in large quantities and re-exports value-added items like jewellery.