International Development News
Development News Edition

Gem and jewellery exports hit by financial woes; growth expected to be flat


The gem and jewellery sector, hit by cash flow and facing hurdles in financing, is expecting that the growth in exports will be flat in dollar term by end of the current fiscal, an official said on Tuesday.

The industry is betting on the Christmas sales in the US to push up the exports.

"We are facing some challenges in financing. We are sorting out with the government and banks. Risk profile of our sector has increased and advanced to the sector is based on the profile. Banks are putting certain regulations and asking more collateral," Gem and Jewellery Export Promotion Council (GJEPC) Executive Director Sabyasachi Ray said here.

"Collateral is around 20-25 per cent of total limit and we are ready to move it up to another 10-15 per cent depending on the scenario," he said.

Banks' exposure in the sector is around Rs 60,000 crore and cash flow still remained an issue, the council's Chairman, Pramod Kumar Agarwal, told the media after the inauguration of the first ever India Jewellery Buyer Seller meet.

Last year, total gem and jewellery exports stood at around $41 billion and during the April-October period of the current fiscal, the gross exports were down by 1.48 per cent in dollar term.

"Maybe in rupee term, we may clock growth. But in dollar term, exports are expected to be flat," Ray said. "Early indications are positive in terms of sales in the US and the industry is looking for Christmas sales in the US."

Devaluation of the rupee has also hit exporters in terms of the credit limit.

"Credit limit is in rupee term. With the devaluation, every limit has gone down proportionately. This is a challenge that we are facing," Ray said.

Agarwal also said the council also wanted the government to reduce the duty on diamonds.

(With inputs from agencies.)


TRENDING

OPINION/BLOG/INTERVIEW

'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

With Ayodhya verdict, CJI starts clearing high profile pending cases

Ending all the speculations, the Chief Justice of India Mr. Ranjan Gogoi who is due to retire on November 17 decided to deliver the verdict in Ayodya dispute at 10.30 am on Saturday which is not a working day for the Supreme Court. This is ...

How partnerships and collaborations could enhance teacher training

Monica Malhotra Kandhari, Managing Director, MBD Group shares her views on public private partnership and collaborations in education sector. She supports her propositions with her organisations success stories....

Fixed Test centers would facelift level of WTC in India

The venues for the test matches in India should be fixed so that World Test Championship matches remain fair....

Videos

Latest News

India pledges to contribute $13.5 mn for UN development activities for 2020

India has pledged to contribute USD 13.5 million for various operational activities of development across the UN agencies for the year 2020. Counsellor at Indias Permanent Mission to the UN Anjani Kumar announced Indias pledges at the UN Ge...

IMS-Design and innovation academy witnesses its annual convocation

New Delhi India Nov 15ANIBusinessWire India IMS-Design and Innovation Academy DIA, held its annual convocation of 2014 batch at Noida Campus. Dr Prof Darlie O Koshy, former Director of NID and DG and CEO of Apparel Training Design Centre gr...

Ahead of winter session, Lok Sabha Speaker calls all-party meeting on Nov 16

Lok Sabha Speaker Om Birla will hold an all-party meeting on November 16, two days before the commencement of the winter session of Parliament. Union Parliamentary Affairs Minister Pralhad Joshi will hold an all-party meeting on November 17...

Australia's Qantas operates 19 ½ hour London-Sydney flight

Perth, Nov 15 AP Australias national carrier Qantas on Friday successfully completed a 19-and-a-half hour non-stop flight from London to Sydney, which was used to run a series of tests to assess the effects of ultra long-haul flights on cre...

Give Feedback