Rajiv Jain, Chairman of the GJEPC, stated that sluggish demand from major markets like Europe, the US, Hong Kong and the UAE is the reason behind the decline in exports. Jain stated that the demand for Indian gems and jewellery in the US is gradually picking up.
Jain also stated that the levying of two percent customs duty on the import of cut and polished demand in the 2012 budget is another reason for the decline in exports. The levy has caused a decline in India’s trading of cut and polished diamonds.
After the levy was imposed, the imports of the same have fallen by 82 percent during April-May 2012 as compared to the same period in 2011.
The exports of polished diamonds have indicated a fall of nearly 40 percent during this period. India’s total gems and jewellery exports in April-May 2012 (USD5.8 billion) have indicated a decline of 16 percent as compared to the same period in 2011 (USD43 billion).
Source: The Times of India