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RAPAPORT... India's import of gold jewelry during the country's first fiscal quarter, which extends from April 1 through June 30, revealed a marginal increase, but exported finished products performed very well. The reason for this could largely be aligned with strict import duties for gold. According to the data released by the Gems & Jewellery Export Promotion Council (GJEPC), gold jewelry imports during the three month period totaled $117.31 million compared with $114.86 million one year earlier. Export figures for gold jewelry, meanwhile, jumped 22.2 percent year on year to $1.953 billion. Speaking exclusively with Rapaport News, Pankaj Parekh, the chairman of GJEPC, revealed, “The increase in the import of gold jewelry is because of the import duty rate, which is 15 percent; whereas, if someone has to import primary gold, the duty rate is 18 percent above the international price. In terms of what has led to the increase in exports, the price of gold has come down by almost 13 percent as compared to what it was in 2013. This makes it within the buying capacity of people, hence they are buying more of gold.
"The liquidity crunch in 2008 had led to an increase in the demand for silver that was used in diamond jewelry," Parekh added. "But with gold once again coming in the affordability range, we see more of gold jewelry shopping. Another reason for the increase in exports of gold jewelry is to maintain the quota of imports under the 80:20 scheme.” Imports of gold bars were basically flat at $1.492 billion due to the scheme, which requires 20 percent of gold bullion be re-exported, according to the GJEPC.
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