Gold jewellery exports in FY15 seen jumping by a quarter

MUMBAI Wed Jun 18, 2014 5:23pm IST

An employee explains the bill to a customer as gold bangles are placed on top of it inside a jewellery showroom in Mumbai August 30, 2013. REUTERS/Danish Siddiqui/Files

An employee explains the bill to a customer as gold bangles are placed on top of it inside a jewellery showroom in Mumbai August 30, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

MUMBAI (Reuters) - Gold jewellery exports from India are likely to grow by a quarter in the year to March 2015, helped by an expected relaxation of import policy and recovering demand from major consuming countries, the head of a trade body said on Wednesday.

Exports of gold jewellery fell by more than half last year due to non-availability of the precious metal after the government tied the import of gold to exports. It also raised the import duty to a record 10 percent.

"There are indications of a relaxation of policy on gold imports and even demand is recovering in the U.S. and other countries," said Vipul Shah, chairman of the Gems and Jewellery Export Promotion Council, which represents over 6,000 exporters.

India exported $7.86 billion of gold jewellery in the last fiscal year, data from the trade body showed.

GJEPC also expects total gem and jewellery exports, which account for 14 percent of merchandise exports, to rise to $44 billion from the last fiscal year's $41 billion.

The trade body has asked the government to reduce the import duty to 4 percent to make smuggling non-viable, and gradually to remove the so-called 80/20 rule, which required a fifth of all gold imports to be exported.

GJEPC has also asked the finance ministry to reduce the import duty on machinery used for jewellery-making to 5 percent from 10 percent.

The budget is due to be presented next month. Prime Minister Narendra Modi has said any action on gold should take into account the interests of the public and traders, not just economics and policy.

(Editing by Dale Hudson)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

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