New Delhi: Exports of gems and jewellery grew 11.7 per cent to $11.4 billion during the first four months of the current fiscal, driven largely by demand in India’s major markets like the US. In April-July period of the last fiscal, exports from the sector were at $10.21 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).

Gems and jewellery contribute about 14 per cent to the country’s overall exports. The rise in April-July was mainly supported by cut and polished diamond exports. It rose to $7.25 billion during the period from $6.89 billion a year ago. Exports of silver jewellery grew by 51 per cent to $1.30 billion during the four months period of this fiscal.

Demand is gradually picking up in markets like the US, which is helping in recording growth in exports in the sector, an official said. Shipments of gold jewellery however contracted by 25.13 per cent to $1 billion during the period under review, from $1.36 billion a year ago.

The rise in April-July was mainly supported by cut and polished diamond exports. It rose to $7.25 billion during the period from $6.89 billion a year ago. Exports of silver jewellery grew by 51 per cent to $1.30 billion during the four months period of this fiscal.

Exports of gold medallion and coins too dipped by 9.51 per cent to $1.48 billion. The government is hoping that incentives such as 3 per cent interest subsidy and enhanced rate for duty drawback would further help contain the decline in exports.

According to GJEPC data, imports of rough diamonds rose by 13.27 per cent to $6 billion in April-July 2016. Imports of gold bars too grew by about 40 per cent to $1.72 billion. After rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84 per cent due to decline in shipments of engineering goods and petroleum products. Gold imports more than halved to $1.08 billion in the month.

Source: PTI