India's gold jewellery exports continue downward journey

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India's gold jewellery exports continue downward journey
India's gold jewellery exports continued their downward slide in November as exporters continued to be hampered by restrictions with officials seeing little chance of a recovery in the industry in the near-term.

India's gold jewellery exports fell to USD 476.1 million in November 2013 from USD 693.62 million in the same month a year ago, the Gold Jewellery Export Promotion Council (GJEPC) said in a report.

In the first eight months of the fiscal year ending March 31, 2014, India's gold jewellery exports fell 52.7 per cent to USD 4.46 billion, the data showed. Gold jewellery exports have been on the decline since the government decided to impose a 10 per cent import duty on the precious metal with officials looking to curb gold imports in a bid to stem the country's ballooning current account deficit (CAD).

Gold is the second most imported item in India after oil. Officials also imposed a condition that 20 per cent of all gold imports must be converted and exported as jewellery.

According to experts, raw material constraints and the difficulty and time in getting clearance of goods from customs has been responsible for the sharp slide in gold jewellery exports even as a decline in global gold prices boosts demand for jewellery.

Dion Global Solutions Ltd.

Story first published: Monday, December 16, 2013, 9:10 [IST]
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