However, compared to the targeted figure of $5,780 billion for 1998-98, the provisional figures released are lower.

Releasing these figures on Tuesday afternoon, Gem Jewellery Export Promotion Council chairman Praveenshankar Pandya, said these figures are subject to an upward revision to incorporate figures from some other centres.

"Despite continuing recessionary trend worldwide, overall exports are higher this year," Pandya said adding "they could have been higher if government policy had permitted an uninterrupted supply of gold for the manufacture of gold jewellery, which formed major portion of total exports." One of the main reasons for the upswing in the gem and jewellery exports last year was the continued buoyancy in western marketswhich compensated for the loss of market in south-east Asian countries reeling from the financial turbulence since mid-1997.

Among other markets that showed an increased intake of diamonds during the year were the UAE, the UK, Kuwait, Hong Kong, Israel and Belgium. According to Pandya, exports are very essential for the country's economy. "As an association we could do much better provided the existing bottlenecks in the policy are removed at the earliest. We have recently met officials in both the commerce and finance ministries and are awaiting their decision regarding easy availability of gold for export activities from the 11 designated agencies".

Interestingly, the year under review witnessed the highest monthly exports ever in the history of cut and polished diamonds which forms the largest segment -- 81.34 per cent (80.54 per cent during the previous year) -- in gem and jewellery exports. In March 1998, the monthly exports of cut and polished diamonds touched $644 million (27.5 million carats).The previous monthly high of $574 million was recorded in March 1996.

Exports of coloured gemstones during 1997-98 at $132 million (provisional) are marginally lower compared with $137 million in the previous year. Non-availability of good quality or rough gemstones continues to be the major reason for stagnancy in exports in this sector.

As regards the target for the new year (1998-99), MR Bhansali, vice chairman of the association, said that they had not yet finalised the figures, and added that it would depend on the new exim policy to be announced sometime next week. "However, given the buoyancy in demand for small diamonds we expect a continued rise in exports like the last year", he maintained.

Replying to a question whether the domestic players in gold and diamond studded jewellery business would welcome competition from foreign branded products, especially from Italy, Pandya said: "As in other industries, competition would be welcome. However, we are confident that we would be able to meet theforeign competition on grounds of better quality and low prices."