Exports of cut and polished diamond from India fell 13.66 per cent in dollar terms in 20015-16 due to a sharp fall in demand from major importing countries on account of the global slowdown. This is the first fall since 2008-09.
According to data released by Gems & Jewellery Export Promotion Council (GJEPC), the association created by the Commerce and Industry Ministry to promote exports, India reported cut and polished diamond revenue of $19,996 million as compared $23,160 million in the previous year, down 13.66 per cent in dollar terms. Internationally, the diamond trade is conducted in dollar terms. In rupee terms, the fall is 7.47 per cent.
Cut and polished diamonds accounted for 52 per cent of the gross gems and jewellery exports in 2015-16, while gold jewellery exports accounted for 22 per cent of the exports.
This is the first time diamond exports from India have fallen since 2008-09, when the world economy collapsed following the subprime crisis in the US.
Exports of gold jewellery also plunged 13.7 per cent to $8,609 million as compared to $9,903 million in 2014-15. Exports of coloured gemstones fell 4.43 per cent to $433 million from 453 million in the previous year. However, exports of silver jewellery went up by 44 per cent to $2,958 million as against $2,052 million in the same period last year. Exports of gold medallions and coins showed a remarkable growth of 84.47 per cent to $5,233 million from $2,836 million in the previous year.
Overall, gem and jewellery exports were down 3.46 per cent in 2015-16 to $3,8599 million from $39,980 million in the previous year.
Addressing a press conference to announce the annual performance, Praveenshankar Pandya, chairman, GJEPC, said, “For the first time ever, the export of cut and polished diamonds has shown a huge decline of 13 per cent due to weak international demand. In 2008-09, exports had fallen due to the global financial crisis. Last year, high rough diamond prices led to the absence of profitability.”
He said: “Slow demand in major importing countries such as Europe, China and the Middle East has impacted exports. Rough diamond prices are edging upwards, the sluggish global demand has created inventory pile up. Increased financial cost or inventory carrying cost has become unbearable. We want the government to provide interest subvention for the first time for a year or two.”
In 2015-16, gem and jewellery exports of $38,599 million accounted for 14.78 per cent of the country’s cumulative exports of $2,61,136 million, making it the second largest exporter after petrochemicals.
However, this is the fifth successive year wherein gross gem and jewellery exports have been falling and the first time in the past six years that the exports of cut and polished diamonds have fallen to below $20,000 million levels.
