The gems and jewellery exports are likely to remain flat in this financial year due to weak demand in economic slowdown-hit overseas markets and GST implementation, a top industry association said today.
Overseas shipments fell in the first half of FY18, but the situation is likely to improve in the second half, said Gem and Jewellery Export Promotion Council (GJEPC) Chairman Praveenshankar Pandya.
"We saw a decline of 10 per cent in overall gems and jewellery exports in the first six months of this financial year, mainly on account of economic slowdown in overseas market, introduction of VAT in Dubai and implementation of GST in July," Pandya told PTI here.
However, he said, the exports are expected to recover in the second half and the total shipments are likely to be around the same level as the last financial year.
The total gems and jewellery exports were worth Rs 2.89 lakh crore during 2016-17.
Meanwhile, the GJEPC has organised a three-day `India International Diamond Week' in Mumbai from November 7 to promote the country's diamond industry globally and improve its trade relations with potential countries.
Prominent buyers from the US, China, Russia, CIS (Commonwealth of Independent States), Lebanon, Saudi Arabia, South Africa, South Korea and Turkey are participating in the event.
"Buyer-seller meets will further promote business ties between Indian players and international buyers. Buyers are taking advantage of this platform because they can concentrate on existing and new customers.
"The diamond trade is a community in itself. It is, therefore, important to collaborate (among its members) so as to create and nurture sustainable growth," Pandya said.
Diamond Dealers Club (US) president Reuven Kaufman said their business is based on trust.
"Overseas buyers need to meet face to face and forge good relationships. The India International Diamond Week is a very good forum as it shifts focus from regional buying to global buying at the most competitive rates," he added.
Source: economictimes.indiatimes.com