Gold jewellery exports turn to uptrend in February

MUMBAI Fri Mar 21, 2014 5:27am IST

An employee receives payment from a customer inside a gold jewellery showroom in Mumbai August 30, 2013. REUTERS/Danish Siddiqui/Files

An employee receives payment from a customer inside a gold jewellery showroom in Mumbai August 30, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - Gold jewellery exports from India rose for the first time in the fiscal year last month, helped by better availablity of gold, and industry officials said this trend will gain pace in coming months with more banks importing.

India's jewellery exports had been hit by limited gold supplies after it curbed imports to bring down a current account deficit.

After falling more than 50 percent since the start of the year, jewellery exports edged higher by one percentage point in February to $718.36 million from a year earlier, the Gems and Jewellery Export Promotion Council (GJEPC) said.

"The comfort level of availability of gold has increased and more supplies will come with new banks coming on board," said Pankaj Kumar Parekh, vice chairman of GJEPC. He said the positive trend will continue in coming months.

India has allowed five domestic private sector banks to import gold. The move could boost supplies and bring down premiums for the metal in the world's second-biggest consumer after China.

Cumulatively, India exported $6.35 billion worth of gold jewellery in the first eleven months from April 2013, down from $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 mostly to the United States and Europe.

Exporters will also eye the next policy moves from the federal government after the current account deficit eased from a record high hit in the year to March 2013.

The CAD, final figures for which are expected to come in the first week of June, is likely to fall 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 favourbale 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."

A trade fair for exporters was held in Hong Kong from March 2 to March 9.

(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi and William Hardy)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Nifty Falls

Nifty Falls

The broader index hits lowest in nearly a week on profit taking  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage