Gold jewellery exports set to rise, says GJEPC

Gold jewellery exports from India, which fell nearly 40 per cent in the 2013-14 financial year, witnessed a rising trend in February and March 2014, the last two months of the fiscal, as raw material supply improved after the RBI allowed more banks to import bullion (See: India eases gold curbs, allows import by private banks).

India, the world's second-biggest consumer of gold, exported gold jewellery worth $7.86 billion in the whole of the financial year ended 31 March 2014, a 39.63-per cent decline from the year-ago exports, an industry body said on Wednesday.

Total gem and jewellery exports from the country fell 11 per cent to $34.75 billion.

Export of silver jewellery during the 12 months ended 31 March 2014, however, rose 58.6 per cent to $1.46 million and industry officials expect further growth in silver jewellery exports.

Gold jewellery exports in March, however, rose 6.09 per cent year-on-year to $992.03 million, according to the Gems and Jewellery Export Promotion Council (GJEPC).

India exported $718.36 million worth of jewellery in February and industry officials say the upward trend looks set to continue.

India last year imposed a 10-per cent duty on gold imports, in a bid to reduce rising consumption of gold, which turned out to be the second-biggest item on its import bill, and rein in ballooning trade deficit.

That hit gold jewellery exports, with shipments in the fiscal year that ended in March dropping around 40 per cent, according to the council.

To beat the slump in sales caused by import restrictions Indian jewellers such as Gitanjali Gems, Malabar Gold and Kalyan Jewellers have opened stores abroad.

Government and the Reserve Bank of India have hinted at a gradual removal of import restrictions as the current account deficit comes under control and a new government takes over at the end of this month.

Gold imports almost doubled in March to 50 tonnes after more banks were allowed to import the yellow metal.

Gold imports into the country are subject to the 80/20 rule imposed in July, which makes it mandatory to export a fifth of all gold imports.