Export of gems & jewellery drop by 9% in FY13-14
Updated: Apr 21, 2014 01:27:49pm
New Delhi, Apr 21 (KNN) Owing to sluggish demand in global markets as also the government’s strict norms pertaining to gold imports, there has been a sharp drop of about 9 per cent in gem and jewellery exports.
The country’s export of gems and jewellery has declined to USD 39.5 billion during the fiscal year 14 compared to USD 43.34 of the previous fiscal, according to official data.
Gems and jewellery contribute to about 15 per cent of the country's overseas shipments.
According to reports, Gold is the second largest import item for India after crude oil and is mainly utilised to meet the demand of the jewellery industry.
Significantly, the government had taken various measures like high customs duty of 10 per cent and 80/20 rule to curb gold shipments to check country’s widening current account deficit (CAD).
Under the 80/20 scheme, which was introduced in August last year, nominated agencies could import gold on condition that 20 per cent of the shipment would be exported and the remainder would be kept for domestic use.
The export of gems and jewellery has been declining since October 2013.
Concerned over the declining gems and jewellery exports fell, Commerce Ministry has asked the Ministry of Finance to relax curbs on gold imports, citing that such restrictions were leading to gold smuggling.
Meanwhile, reduction in India’s gold imports has helped to contain the current account deficit (CAD) to USD 31.1 billion (2.3 per cent of GDP) during the April-December FY14 period as compared to USD 69.8 billion (5.2 per cent of GDP) reported in the same period of previous fiscal year. (KNN/ES)
The country’s export of gems and jewellery has declined to USD 39.5 billion during the fiscal year 14 compared to USD 43.34 of the previous fiscal, according to official data.
Gems and jewellery contribute to about 15 per cent of the country's overseas shipments.
According to reports, Gold is the second largest import item for India after crude oil and is mainly utilised to meet the demand of the jewellery industry.
Significantly, the government had taken various measures like high customs duty of 10 per cent and 80/20 rule to curb gold shipments to check country’s widening current account deficit (CAD).
Under the 80/20 scheme, which was introduced in August last year, nominated agencies could import gold on condition that 20 per cent of the shipment would be exported and the remainder would be kept for domestic use.
The export of gems and jewellery has been declining since October 2013.
Concerned over the declining gems and jewellery exports fell, Commerce Ministry has asked the Ministry of Finance to relax curbs on gold imports, citing that such restrictions were leading to gold smuggling.
Meanwhile, reduction in India’s gold imports has helped to contain the current account deficit (CAD) to USD 31.1 billion (2.3 per cent of GDP) during the April-December FY14 period as compared to USD 69.8 billion (5.2 per cent of GDP) reported in the same period of previous fiscal year. (KNN/ES)
Loading...
