Online BusinessGems and jewellery exports fall 8% in OCT
Record gold prices took the shine off gems and jewellery exports, which fell 8 per cent to $2.11 billion (Rs 9,878 crore) in October compared to the same period last year.
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Exports in October last year, at the height of the global financial meltdown, were at $2.29 billion.
However, exports in segments such as cut and polished diamonds and coloured gemstones grew 17 per cent and 31 per cent, respectively, during the month. Gold exports fell 42 per cent.
For September, exports were up 2 per cent on a year-on-year basis on the back of Christmas season orders.
Industry experts said although the industry received more Christmas orders this year, October showed a decline on account of volatility in gold prices.
Gold prices, which impact the entire gems and jewellery sector, fluctuated between Rs 15,800 and Rs 16,250 per 10 gm during the month. The month saw the metal breaching the Rs 16,000-mark for the first time, setting the stage for further rise.
“Volatility in gold prices has slowed the demand for the yellow metal,” Gems and Jewellery Export Promotion Council Chairman Basant Mehta said. Besides, he added, “Christmas orders come two-three months in advance, so deliveries for the festive season were mainly done in September and not October (which is the usual practice).”
On the possible impact on exports in view of the current financial crisis in Dubai, a major export market for India, Mehta said, “We have to wait and watch for another one month to see whether the Dubai crisis will have any impact on other countries or not.”
The UAE, led by Dubai, is the largest destination for India’s gems and jewellery, accounting for 31 per cent of total exports, followed by Hong Kong (25 per cent) and the US (20 per cent).
Mehta said if other countries get impacted by Dubai, consumption levels would be affected, hitting Indian exporters.