ModernJeweler.com |

India’s gem and jewelry exports for the financial year ending in March 2008 increased a remarkable 22 percent to $20.8 billion, despite the appreciation of the rupee and the loss of GSP status, which increased the duty on imports to the U.S.

The growth was due to surging exports to Asia. For the first time, the percentage of India’s exports going to Hong Kong, 26 percent, was the same as that going to the U.S. This is due primarily to growth in exports of cut and polished diamonds, which increased 30 percent to $14.2 billion. Hong Kong was the most important market for diamond exports, accounting for 35 percent, followed by the U.S., with a 24 percent share of diamond exports.

Exports of gold jewelry rose by 8 percent with total exports amounting to $5.6 billion. Export of colored gemstones and others grew 12 percent to $276 million. “What is remarkable about this performance is that it has been achieved in face of appreciating rupee, high interest rates, withdrawal of GSP benefits, and general economic slowdown in our major markets,” says Sanjay Kothari, chairman of India’s Gem & Jewellery Export Promotion Council.