India's March Polished Exports +10%

India’s polished diamond exports rose 10 percent year on year to $2.337 billion in March 2013, according to the Gems & Jewellery Export Promotion Council (GJEPC). By volume, the exports grew 7 percent to 4.552 million carats. 

Polished imports increased 24 percent to $1.122 billion during the month. India’s net polished exports, representing the excess of exports over imports, was flat at $1.215 billion.

India’s rough diamond imports fell 2 percent to $1.419 million in March, while rough exports declined 13 percent to $199.77 million. Net rough imports, or the excess of imports over exports, was flat at $1.22 billion.

India’s March net diamond account, which is calculated as total exports of polished and rough less total imports, improved to a deficit of $4.5 million, from a deficit of $8.89 million one year ago.

During the first quarter, India’s polished exports rose 9 percent to $5.867 billion, while polished imports fell 9 percent to $2.194 billion, according to Rapaport calculations. Rough imports declined 5 percent to $3.720 billion and rough exports grew 11 percent to $544 million.

India’s first quarter net diamond account improved to a surplus of $497 million from a deficit of $457 million one year earlier. 

The GJEPC published its fiscal year report for the gem and jewelry industry, which covered April 1, 2012 to March 31, 2013, noting that the industry made a positive contribution to reducing India’s current account deficit by controlling imports and increasing exports. 

Such measures included the introduction of new duties on precious metals imports and a 2 percent import duty on polished diamonds introduced in January 2012. Still, total gem and jewelry exports fell 3 percent year on year to $4.39 billion during India's fiscal year, while total imports rose 2 percent to $3.84 billion. 

Vipul Shah, GJEPC's chairman, said he expects the country's gem and jewelry exports to increase by between 12 percent to 15 percent in fiscal 2013. 

"At a time when the industry was going through a challenging period, governmental regulations related to the reintroduction of bonded warehouse facility for diamond exporters and revision in duty drawback rate facility for gold jewelry exporters has helped strengthen the industry further,” Shah explained. “The council also applauds the government’s efforts for accepting recommendations of task group report to make India an international trading hub for rough diamonds.”

Other proposals in the offing for fiscal year include the introduction of consignment imports of diamonds, launching rough diamonds tenders and auctions, and establishing a committee to examine bank lending to the diamond and jewelry sector.

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