The decreasing gold jewelry export from India has been a cause of concern since some time now; however, finally a glimpse of hope has arisen up with gold jewelry exports from the nation climbed up for the first time in the fiscal year last month. The credit for the same can be given to the better accessibility of gold. If believe the industry officials, this trend will definitely put on the speed in coming months with more banks importing. The jewelry exports in India were affected by restricted gold supplies after the imports were restrained to lower a current account deficit.
Following the drop of more than 50 per cent since the start of the year, jewelry exports went up by one percent point in February to US $718.36 million from a year earlier, said the Gems and Jewellery Export Promotion Council (GJEPC). Vice chairman of GJEPC, Pankaj Kumar Parekh said the comfort level of availability of gold has increased and more supplies will come with new banks coming on board. The country has given permission to five domestic private sector banks to import gold. It is expected to increase supplies and cut down premiums for the metal in India, which is the world’s second-biggest consumer after China.
Due to the rise, India went on to export US $6.35 billion worth of gold jewellery in the first eleven months from April 2013, down from US $11.67 billion. “Things are a little better than last time as we are getting gold and even the American market is recovering,” said Rajiv Jain, chairman and managing director of Sambhav Gems, which exports gem studded jewellery generally to the United States and Europe. Exporters are also looking at the next policy proceeds from the federal government subsequent to the current account deficit ease from a record high hit in the year to March 2013.
It is also expected that CAD, which final figures are likely to be revealed in the first week of June, will drop to less than $40 billion for the fiscal year ending March 31 from its record $88 billion in the previous year. “Next year should be good as far as exports are concerned. If there are favorable changes in gold import policy that will help,” said Jain. “At the last Hong Kong exhibition the response from gems and jewellery traders was good, further adding to hopes.”
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