The gems and jewellery of India, which is the third-largest foreign exchange earner for the country, has increased slightly by 1.45% to $21.11 billion in FY09 despite a reduction in global demand.
However, the growth is because of a strong performance in the first half of the fiscal. The global recession touched the gems and jewellery sector in the second half of FY09 and exports decreased by 18.9%, mostly due to a plunge in demand from the US.
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As per the industry, the first six months of the new fiscal will continue to be minimalist. However, Gems & Jewellery Export Promotion Council (GJEPC) chairman, Vasant Mehta said that exports could go up in the second half of 2009-10 if there is a turnaround in the global economy.
Speaking at a press conference on Wednesday, Mr. Mehta stated that the sector witnessed a job loss of about 2 lakh workers during the past year. He said, "The job losses are not just because of downsizing. It is largely due to closing of hundreds of small units because of falling orders."
Mr. Mehta added, "We are looking at a period of bottoming out of the recession. Hopefully by last quarter of the fiscal, the situation would improve, though we have not yet set an export target for the year."
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