New Delhi February 18, 2014:- The export of gold jewellery from India is likely to dip by about 50 per cent this financial year due to the reduced availability of the yellow metal on account of restrictions imposed on import by government.
If raw material availability remains low, it will give rise to smuggling, industry players said.
Gold jewellery exports were Rs 1,293 crore in 2012-13, according to the Gems and Jewellery Export Promotion Council.
Gitanjali Gems Chairman and Managing Director Mehul Choksi said there were less stocks available in the market and the premium was as high as 8-10 per cent in the domestic market.
“This will give rise to smuggling. Very little gold is available for exports. Exports have declined by 55 per cent since the last seven months. We are expecting an overall about 50 per cent decline in gold jewellery exports this financial year,” he said.
Choksi said Indian demand for gold jewellery is shifting to the Middle East due to competitive prices.
“Middle East countries are taking advantage of the India situation as Indians are going to those countries to buy gold jewellery,” he added.
All India Gems and Jewellery Trade Federation (GJF) Chairman Haresh Soni said NRIs are also buying from outside India.
“The domestic market is affected by the lower availability of stocks. Even NRI demand is getting diverted to other countries like the neighbouring countries and Dubai,” he added.-Business today
