Gold jewellery imports to India may slide to $1bn

With the US and Japanese markets expected to bounce back, India’s gems and jewellery exports are likely to grow by 15% this fiscal, according to India’s Gems and Jewellery Export Promotion Council. However, India’s gold jewellery imports are expected to slide to $1 billion this fiscal, from the  $4.5 billion it clocked last year.
“The US and Japanese jewellery markets are expected to bounce back with an estimated 5% growth, while China will remain stable at 10% growth,” Council Chairman Vipul Shah said. India’s gold jewellery imports from Thailand which dropped to $95.48 million in the first three quarters of this fiscal, is set to slide further, officials said.
With the Indian government suspending gold jewellery imports from Thailand last month, Council officials at the media briefing in Mumbai said gold jewellery imports have come down substantially from the Asian neighbour. India’s gold jewellery imports jumped to $4.5 billion in 2012 from $832.2 million a year ago, data from the Council showed.
The Indian government had expressed concern that incoming jewellery from Thailand did not have the 20% added value as stipulated in the foreign trade agreement between the two countries. Officials from both the countries met last month to discuss the issue and it was agreed that due diligence and verification would be undertaken by Thailand to ensure there is no discrepancy.
Officials added that for the period spanning April to November 2012, gold jewellery imports from Thailand were valued at $92 million. The government has taken several measures to boost the gems and jewellery sector, officials said adding that such measures included permission to import diamonds on a consignment basis for certification and grading and re-export by specified agencies.

Source: Bullion Bulletin

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