NEW DELHI (Scrap Monster): Despite fall in global jewellery demand, the gold jewellery exports from India remained robust during the initial quarter of the current fiscal. The exports during the period from April to June ’14 surpassed $ 2 billion, 23% higher than the exports during same quarter last fiscal.
According to Pankaj Parekh, Vice Chairman, Gems and Jewellery Export Promotion Council (GJEPC), the increase in exports is mainly attributed to low gold prices. The demand from the US and UK picked up in tandem with the recovering economies of the region. But this rise in demand was offset by decreased off-take in Asia and the Middle East. The global demand for jewellery witnessed sharp decline of 36% during the quarter.
The jewellery markets in the US and UK rebounded strongly. Jewellery with minimum gold content has become a big hit in Western countries, said GJEPC, quoting a recent report released by the World Gold Council (WGC). It termed the decline in Asian demand as dramatic considering the high demand levels witnessed during the previous fiscal.
However, the domestic gold jewelry demand fell 25% to $6.4 billion during the quarter.
The gold jewelry market in India is likely to wake up from its slumber by end-August when the festival season kicks off in the country. Industry experts believe that large number of customers have been so far waiting on the sidelines for further clarity on gold import duty cuts. Now with Finance Ministry ruling out immediate possibilities of reduction in gold import duty, more people will venture out to buy gold with the commencement of festive season by end-August.
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