Gold jewellery exports dips

Gold jewellery export seems to have taken a beating in the first quarter of fiscal year 2008-09. It dipped 6 percent, valuing to Rs.4,685 crore ($1,150 million), while in the same quarter last year it was Rs.5,003 crore ($1,198 million). The fall has been attributed to the rising gold prices, which pulled down gold jewellery exports by 11 percent in June 2008, valuing it at Rs.1,476 crore ($347 million), as against Rs 1,661 crore ($411 million).

This is contrary to the overall gem and jewellery exports in Q1 of 2008, which surged by 23 percent and amounted to Rs.21,603 crore ($5,301 million), as against last year figures of Rs.18,051 crore ($4,321 million). The increase in cut and polished diamonds trading activities and reduced import duty, propelled the growth.

The gold jewellery exports from direct tariff area (DTA) dipped by 22 per cent to Rs.2,164 crore ($531 million)and from the Special Economic Zone and Export Processing Zone grew by 14 per cent to Rs.2,521 crore ($619 million), as against Rs.2,217 crore ($531 million).

What the industry is looking forward to is a consistent growth of 15-20 percent as has been for the last few years.