Jewellery exports are likely to be hit and decline by up to 20 per cent in FY14, due to limited availability of gold inventory in the domestic market following the government’s steps to curb demand, according to export promotion body GJEPC.
“It is difficult to get stocks for manufacturing jewellery and if the current situation prevails, it is going to hurt the exports by 15-20 per cent this year,” Gems and Jewellery Export Promotion Council (GJEPC) Chairman Vipul Shah said.
Even as the US market is picking up, the rise in input costs as well as the interest rates will make it difficult for exporters to ship their products at competitive rates, he said adding this may result in hitting their margins.
To discuss this situation, GJEPC is meeting the Commerce Ministry officials on Monday, he said.
India exported USD 39 billion worth various precious gems and jewellery in the 2012-13 fiscal, according to GJEPC data.