Jewellery exports down, likely to fall more in FY18

Jewellery export from India is likely to fall by 12-15 per cent in the near term. Demand from the European Union (EU), West Asia and Hong Kong, among other places constituting 55 per cent of the market, continues to be tepid. Industry officials say it would take 18 to 24 months for export to see growth. According to data from the Gems and Jewellery Export Promotion Council (GJEPC), export during April-November (first eight months of this financial year) fell 8.2 per cent to Rs 1.45 trillion ($22.6 billion), against Rs 1.58 trillion ($24.6 bn) in the same period a year before.Apart from the demand problem in the key regions, a five per cent value added tax has been recently imposed by West Asia countries for such export (regional governments need more revenue, with the earlier slump in oil prices). This would mean more downward pressure on sales, says Praveen S Pandya, chairman of GJEPC. Shankaar Sen, managing director at Senco Gold and Diamonds, which exports to America, Britain ...