India's gems, jewellery exports lose lustre in FY12

New Delhi, Apr 16 (PTI) Gems and jewellery exports from India dipped marginally to USD 42.84 billion in fiscal 2011-12 ended March 31, 2012 owing to weak demand in western markets like the US and Europe, Gems and Jewellery Export Promotion Council said today. The exports had stood at USD 42.99 billion in the previous year. The council had set a target of USD 48 billion for 2011-12. "The exports remained flat in the last fiscal due to less number of orders from main markets like the US and Europe which are facing sluggish economic growth," council's chairman Rajiv Jain said. Besides, Jain said the imposition of two per cent import duty on diamonds has affected the re-exports of value-added items like diamond-studded jewellery. India imports large quantity of rough diamonds. In January, the government had imposed the import duty on diamonds. After imposition of the duty, exports of cut and polished diamonds started falling. In January, 2012, the shipments declined by 19 per cent, followed by 54 per cent in February and 17 per cent drop in March, Jain said. The UAE is the main destination for the country's gems and jewellery exports, followed by the US, Hong Kong and Europe. The gems and jewellery exports sector employs about 1.3 million people. PTI