New Delhi: Record gold prices took the shine
off gems and jewellery exports, which fell eight per cent to
USD 2.11 billion (Rs 9,878 crore)in October compared to the
same period last year.
Exports in October last year, at the height of the global
meltdown, were at USD 2.29 billion.
However, exports in certain segments like cut and
polished diamonds and coloured gemstones grew 17 per cent and
31 per cent respectively during the month. Gold exports fell
42 per cent.
For September exports were up 2 per cent on a year-on
-year basis on the back of Christmas season orders.
Industry experts said although Indian industry received
more Christmas orders this year, October showed a decline on
account of volatility in gold prices.
Gold prices, which impact the entire gems and jewellery
sector, fluctuated between Rs 15,800 to Rs 16,250 per 10
grams. The month saw the metal breeching the Rs 16,000 mark
for the first time, setting the stage for further rise.
"Volatility in gold prices has slowed down the demand for
the yellow metal," Gems and Jewellery Export Promotion Council
Chairman Basant Mehta said.
Besides, he added, "Christmas orders come two-three
months in advance, so deliveries for the festive season were
mainly done in September compared to October."
On the possible impact on exports in view of the current
financial crisis in Dubai, a major export market for India,
Mehta said, "We have to wait and watch for another one month
to see whether Dubai crisis will have any impact on other
countries or not."
The UAE, led by Dubai, is the largest destination for
India`s gems and jewellery accounting for 31 per cent of the
total exports, followed by Hong Kong--25 per cent and the US--
20 per cent.
Mehta said if other countries get impacted by Dubai,
consumption levels would be affected, hitting Indian