The credit profiles of the cut and polished diamond sector in India is believed to moderately deteriorate in medium term while a healthy growth for the gold jewellery sector is anticipated, said Care Ratings in a recent report.
According to the leading credit rating agency in India, the lacklustre diamond manufacturing sector in the country is a result of sluggish demands in some of the key markets and the tightening bank credit. Nevertheless, the gold and studded jewellery sector is seeing growth thanks to the improving availability of gold and consumer sentiments and the easing of regulatory restrictions.
Gem and jewellery export fell by 0.62 percent in FY15 (1 April 2014 to 31 March 2015) to US$39.89 billion from FY14, according to the Gems and Jewellery Exports Promotion Council (GJEPC). Overall gross export of cut and polished diamonds declined by 5.46 percent to US$23.16 billion over the same period.
Export of gold jewellery for FY15 registered a significant increase of 17.74 percent to US$9.85 billion. Export of silver jewellery increased by 39.28 percent year-on-year to US$2.05 billion.
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