Gems not desired

Just how badly hit has been the export earnings of the gem and jewellery sector, is becoming evident. The annual performance report by the Gem and Jewellery Export Promotion Council shows that the second half of the year saw a decline of 18.88 per cent in export earnings, though, overall 2008-09 saw a marginal 1.45 per cent (YoY) increase in earnings.

The cut and polished diamond segment, which accounts for 62 per cent of the total business, witnessed a fall of 8.24 per cent with exports decreasing from $14.19 billion (Rs 70,950 crore) in 2007-08 to $13.02 billion (Rs 65,100 crore). “Cancellation of orders from the US led to retrenchments in the sector. We have been badly hit,” says Vasant Mehta, Chairman, GJEPC.

The growth in the sector was primarily driven by gold which registered a jump of 23.64 per cent.

—Manu Kaushik