Jewellery exports continue to dip, October exports down 5 percent
today Nov 12, 2019
India’s gems and jewellery exports continue to dip with exports for October down five percent to Rs 24,583 crore ($3.42 billion), as against exports of Rs 26,010 crore in October 2018.
The slowdown in exports was attributed to the ongoing trade war between the U.S. and China, coupled with weak demand in the main export markets and the implementation of VAT in the Middle East. Local factors such as credit crunch, higher taxation also led to a drop in exports.
Even though the overall gems and jewellery sector has witnessed a decline in exports, gold continues to shine with strong exports for the month.
Shipments of gold jewellery in October grew by 8 percent to Rs 7,578 crore from Rs 6,984 crore in October 2018, according to data shared by the Gems and Jewellery Export Promotion Council (GJEPC).
The cut polished diamond exports for October declined by 18 percent to Rs 13,875 crore.
“The exports have been impacted due to weak demand from the US market triggered by the continuing trade war between the US and China. Further, the on-going protests in Hong Kong and the slowdown in the Middle East after the implementation of value-added tax (VAT) from January 2018 also affected gems and jewellery exports," GJEPC said in a statement.
India is one of the leading exporters of gems and jewellery. GJEPC estimates gems and jewellery exports make up about 15 percent of the country’s total exports.
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