Gems and jewellery exports continue to glitter

NEW DELHI: India's gems and jewellery exports grew by 56 per cent to USD 4 billion in September 2010, compared to a year-ago period, thanks to the rising demand from markets like the Middle East and US.

The exports stood at $2.6 billion in September 2009, according to the Gems and Jewellery Export Promotion Council (GJEPC) data.

"There is a good demand for gems and jewellery items from the Middle East and US markets," GJEPC Chairman Rajiv Jain said.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said, gold investment has become more lucrative due to fluctuating stock markets and lower interest rates.

The UAE is the major market for India's gems and jewellery exports followed by the US and Europe.

Exports of gold jewellery saw a maximum growth of 113 per cent year-on-year followed by non-gold jewellery 72 per cent and cut and polished diamonds 36 per cent, as per the GJEPC data.

However, coloured gemstones declined by 25 per cent in the period under review.

Besides, there is demand for the Indian products from markets like China and Russia, Jain said.

The exports of the precious items during the April- September period increased by about 46 per cent to USD 18.8 billion over the same period last fiscal.