Indian Jeweller (IJ) Magazine August -September 2019

Policy & Market UPdate
commerce Ministry: Gold imports up by 35.5% in april June
The country’s gold imports, which
have a bearing on the current
account deficit (CAD), increased
by 35.5 per cent to USD 11.45 billion
(about Rs 80,000 crore) during April-
June quarter of the current fiscal,
according to commerce ministry data.
Imports of the yellow metal stood
at USD 8.45 billion (about Rs 59,000
crore) in the same period of 2018-19.
Increase in gold imports pushed
the country’s trade deficit marginally
to USD 45.96 billion during April-
June quarter of 2019-20 as against
USD 44.94 billion in the same quarter
previous fiscal.
Since January this year, gold imports
have recorded a double digit growth,
except in February when it dipped by
about 11 per cent. India is the largest
importer of gold, which mainly caters to
the demand of the jewellery industry.
In volume terms, the country imports
800-900 tonnes of gold annually.
Platinum worth Rs 247
crore was imported
during June-July
A
sudden spurt in the imports of platinum has left the
industry intrigued. In June and July, platinum imports
have gone up by almost four times to Rs 247 crore
compared to Rs 51 crore during the same period last
year—a growth of 384 per cent. In June, the imports went
up 215 per cent and more than 500 per cent in July.
During the past few months, the price of platinum too
had fallen significantly. From a recent high of $912 per
ounce in mid-April
prices had come down
to $786 an ounce in
the end of May. Hence,
the increase in import
volumes will be higher
than in terms of value
growth. The import
of platinum has been
growing only by around
20-30 per cent in the months prior to June, as per the
data from the Gems & Jewellery Export Promotion Council
(GJEPC).
According to Vaishali Banerjee, Managing Director of
Platinum Guild International, India, the domestic platinum
jewellery market has been growing by around 25-30 per
cent year-on-year. PGI has not witnessed any increased
demand in the past two months. Platinum is used largely
for jewellery purposes. It is also used in the automotive
industry and as a catalyst in the manufacturing of glass,
pharmaceutical products and nitric acid.
GSP benefits could help
increase jewellery exports to
US to $3 billion
India’s nodal jewellery trade body has told commerce
minister Piyush Goyal that exports to the U.S. could jump
by $1 billion to almost $3 billion if Washington were to
extend duty benefits to these products under the Generalised
System of Preferences (GSP).
The GSP refers to a trade programme providing benefits
to developing-world exports to the U.S. The Gem & Jewellery
Export Promotion
Council (GJEPC) has
told the minister
that China gained
at the expense of
India with its overall
jewellery exports to
the US increasing
from $2.78 billion
in 2007 to a peak of
$3.66 billion in 2013,
before rationalising
to $3.1 billion in 2018. US imports of Indian gold jewellery
articles fell from $2.21 billion in 2006 to $882 million in
2008 after the products ceased to get preferential treatment
under GSP as they crossed the so-called competitive need
limitation, which imposes import ceilings on products and
countries that might otherwise not be “competitive”.
Imports of these articles by the US picked up to $1.38
billion over the next 10 years through 2018, “thanks to the
industry of Indian exporters,” said Sabyasachi Ray, Executive
Director, GJEPC. But exports are still below the pre-GSP
withdrawal levels.
40 | august-september 2019 | INDIAN JEWELLER