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Silver jewellery export shines at 60% |
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Surat: While import duty on gold and weak demand of polished diamonds in key markets of the world continues to affect gold jewellery exports, silver jewellery export has come to add glitter to India's gems and jewellery business.
Export of gold and diamond-studded jewellery manufactured in domestic tariff area (DTA) has witnessed 40 per cent decrease and overall export fallen by 16 per cent in April 2015 to February-2016.
Gems and Jewellery Export Promotion Council (GJEPC) data shows gold jewellery export from domestic tariff area (DTA) from April 2015 to February 2016 was $3.4 billion compared to $5.8 billion during the same period last year. The overall export of gold and studded jewellery was $7.7 billion compared to $9.9 billion during the same period in the previous year.
On the other hand, import of gold bars witnessed 27 per cent decrease at $3.5 billion compared to $5.4 billion during April 2015 to February 2016.
At a time when gold and diamond jewellery export declined significantly due to weak global demand, shipments of silver jewellery have shot up over the last few years following big investments by local jewellers in technology.
The GJEPC data shows that India's silver jewellery export rose 60 per cent at $2.7 billion during April 2015 to February 2016 compared to $1.7 billion during the same period in the previous year.
Similarly, India's export of cut and polished diamonds fell 15 per cent at $18 billion in April 2015-February 2016 compared to $21 billion during the same period in the previous year.
Diamond industry analyst Aniruddha Lidbide said, "Gold jewellery has become uncompetitive for Indian manufacturers in overseas market due to import duty. Indian manufacturers have been buying gold at high prices compared to their counterparts in other countries."
GJEPC regional chairman Dinesh Navadiya said, "Silver jewellery exports have witnessed a sharp increase in the last few years due to rising overseas demand. Jewellery manufacturers in Mumbai, Kolkata, Delhi and Surat have invested in technology in the last few years. This has helped the industry to cater to bulk export orders from overseas markets. As jewellery designing skills have increased in India, orders have been flowing in from overseas buyers. These orders were earlier going to manufacturers in Italy and other countries. Indian market is very competitive as manufacturing cost is 40 per cent lower here."
Source : timesofindia.indiatimes.com
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