GJEPC Contributes US $ 2,132.82 Million towards India’s Foreign Exchange Earnings

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GJEPCThe Gem &Jewellery Export Promotion Council (GJEPC) recently announced the annual performance for the Indian Gem &Jewellery sector, declaring a contribution of US $ 2,132.82 million to India’s coffers in terms of foreign exchange earnings, up 154 percent as compared to the same period last year.

The financial year 2012-13 ended on a positive note with imports of rough diamonds going up by 12.65 percent indicating an increase in cutting, polishing and other manufacturing activities in India. The industry also saw an increase in manufacturing activities indicated by the 33 percent growth in the export of gold jewellery contributing significantly to India’s foreign exchange earnings and supported balance of payments. The year also witnessed a significant drop of 61.45 percent in the import of cut and polished diamonds indicating a huge cut in India’s foreign exchange spending, thereby reducing the country’s current account deficit (CAD). Total gem and jewellery exports for the year 2012-13 was US $ 39.033 billion.

Commenting on the annual results, Mr. Vipul Shah, Chairman of Gem &Jewellery Export Promotion Council said, “The results have been quite favorable this year. The industry has strived hard towards reducing India’s current account deficit by controlling imports and increasing exports. The industry’s contribution towards India’s exchequer has also seen a staggering rise of 154 percent.

Mr. Shah added, “At a time when the industry was going through a challenging period, governmental regulations related to the reintroduction of bonded warehouse facility for diamond exporters and revision in duty drawback rate facility for Gold jewellery exporters has helped strengthen the industry further. The Council also applauds the government’s efforts for accepting recommendations of Task Group report to make India an International Trading hub for rough diamonds”

Commenting on the outlook for 2013-14 Mr. Shah added, “The outlook for 2013-14 looks positive with an estimated growth of 12 to 15 percent in the overall gems &jewellery exports in the current fiscal. The US and Japanese jewellery markets will bounce back with an estimated 5 % growth while China will remain stable at 10 % growth.” Other proposals in the offing for the year 2013-14 include regulatory measures such as introduction of consignment imports of diamonds, start of rough diamonds tenders and auctions in India, formation of committee for looking into lending norms for banks to the diamond and jewellery sector as well as commissioning of a study on ECIB covers by ECGC to banks.

The Gem &Jewellery Export Promotion Council continued with its various initiatives aimed at promoting international as well as domestic trade in India.  Some of the initiatives included India International Jewellery Week (IIJW), India International Jewellery Show (IIJS), India-China Buyer Seller meet, budget recommendations to the Government of India, seminar on synthetic diamonds and regular industry reports. Last month the Council also organized its first business to consumer event, India Gems &Jewellery Fair (IGJF) in New Delhi in association with ITPO as well as having hosted the India International Jewellery Week (IIJW) in New Delhi. Council in its endeavor for better interaction & understanding between the trade & banks successfully organized Banking Summit in Mumbai in April. Senior Officials from RBI & other leading banks along with Credit Institutions and trade members participated in this symposium.

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