India’s export of Gold jewellery recorded a smart recovery at the start of fiscal year 2014-15 growing 27.3 per cent to reach Rs.3,648.29 crore in April 2014, against the year-ago period. Figures from Gem & Jewellery Export Promotion Council (GJEPC) show that in dollar terms, gold jewellery exports rose 14.69 per cent to $604.42 million.
Cut and polished diamond exports too rose almost 20 per cent at Rs.9,864.34 crore while in dollar terms they rose 8 per cent to $1,634.25 million in April 2014.
However, total exports including exports of gold medallions & coins, coloured gemstones, silver jewellery, pearls, synthetic stones and rough diamonds, declined 6.8 per cent to Rs.14,989.4 crore and 16.03 per cent in dollar terms to $2,483.33 million.
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“The improvement is heartening and I believe the worst for the industry is now behind us. It also reflects the improvement in the supply of gold,’’ Vipul Shah, Chairman, GJEPC, told this correspondent.
He said around 50 tonnes of gold had come into India in March 2014 and the improved showing was the consequence of that supply.
India does not produce any gold and a huge current account deficit (CAD) in early 2013 led the government to impose restrictions of gold imports in July 2013 as it felt that was one reason for the high CAD.
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Subsequently, India faced a gold shortage following a 10 per cent import duty on gold and the 80:20 scheme which made it mandatory for all gold importers to export a fifth of the value of the imported gold.
“Things are a lot better now. The CAD is under control, the US economy is doing better so demand from the major market for India’s gold exports is better,’’ Mr. Shah said adding that the with a stable government now at the centre, there were hopes for a drastic cut in import duty ``to the original 2 per cent levels and a complete roll-back of the 80:20 scheme.’’