In the midst of a crackdown on gold imports, the country’s exports of gems and jewelery suffered a fall of 5.7% year on year between April and November, thanks to lower outbound shipments of Jewelry & gold coins.
India, the largest consumer of bullion in the world, that just produces gold and relies on imports to meet domestic and export demand.
In addition, buying gold from overseas and export value-added products, like jewelry and coins.
Based on interim data by the Ministry of Commerce, gems and jewelry exports in the period from April to November fell to $ 26.99 billion, compared to $ 28.61 billion a year earlier. However, gold imports in this period fell to $ 21.42 billion from $ 32,33 billion.
Moreover, data from the Gems and Jewellery Export Promotion Council showed exports of gold jewelery slammed by nearly 53% during the first eight months of this fiscal year to $ 4.46 billion, while the medallion gold plunged 41.4% to $ 2.03 billion.
Bullion industry officials have attributed the falling exports to a series of measures by the authorities to reduce imports of gold – and the confusion resulting from some of the measures – to cut the current account deficit.
By the authorities have intensified crackdown on gold imports, especially from June after imports in the first two months of this fiscal year surpassed a record 300 tonnes, worsening fears of a current account deficit out of control.
The RBI officials in July that a fifth of the imported gold should be kept aside for re-exports, which led to confusion over whether required to be restricted to outbound shipments should not exceed the amount 20% .
In September, the government made it clear that the amount to be reserved for re-exports must be at least 20%, paving the way for more gold imports as well as exports, said industry executive.
The country’s gold imports fell 79% in the quarter to September to $ 3.5 billion from the previous quarter as a result of repression.
Even the imports during the period between October and November, when demand for the festive season and marriage usually drives purchases from overseas also slammed to just $ 2.2 billion, compared with 12,100 billion dollars a year earlier.
Reported News Source: Financial Express Bureau