Indian exports of gold jewellery have dropped 25.47 percent over the first five months of the current fiscal year (April-August) to $2.84 billion from the $3.82 billion during the same period last year according to data released by the Gem & Jewellery Export Promotion Council (GJEPC).
The GJEPC’s statistics come hard on the heels of its warning that Indian gem and jewellery exports this fiscal year could drop as much as 30 percent due to the negative impact of the Goods and Services Tax (GST) on the gold jewellery export production industry.
The GJEPC had pointed out that the way GST was structured for the gold jewellery export industry, its already thin margins were being almost completely eroded.
The GJEPC’s statistics show that exports of gold medallions and coins over the period have also dropped 18.09 percent to $1.6 billion from the $1.95 billion recorded during the same period last year.
The gold jewellery and medallion export performance is correlated with a 38.5 percent drop in imports of gold bullion to $1.26 billion as against $2.05 billion the previous year.
Exports of cut and polished diamonds registered a tiny 0.51-percent increase to $9.24 billion from the $9.2 billion the previous year, with rough imports during the period rising 8.84 percent to $7.7 billion from the $7.07 billion last year.
Silver jewellery exports during the period increased a robust 19.83 percent to $2.01 billion from the $1.68 billion during the same period last year.
The significant drop in gold jewellery and medallion exports resulted in overall exports of gems and jewellery during the period falling 8.12 percent to $13.5 billion from the $14.7 billion the previous year.