According to Praveen Shankar Pandya, chairman, Gem & Jewellery Export Promotion Council, despite continued worldwide recession, overall exports during 1997-98 marked an increase of little over five per cent. Exports of cut and polished diamonds during 1997-98 at $ 4,491 million marked an impressive increase of 6% compared with exports of $ 4,235 million in the previous year. He said the year witnessed the highest monthly exports ever in the history of cut and polished diamonds. At $ 644 million in March 1998, the previous best of $ 574 million in March 1996 has been eclipsed.

Looking to the demand recession in major consuming centres, the Indian diamond industrydid extremely well to curtail its level of imports in the latter part of the year, which has not only reduced the inventory levels, but has also given rise to an impressive value addition, he said. This segment, which forms the lion's share, accounted for 81.34 per cent of total gem and jewellery exports as compared with 80.54 per cent of the previous year. ``USA, Belgium, Hong Kong and Israel showed an increase in their intake, whereas Japan, Thailand and Singapore showed a marked decline,'' he added.

Exports of gold jewellery at $ 801 million during 1997-98 (provisional) registered a growth of 7.17 per cent compared to $ 748 million in the previous year. However, exports suffered due to interrupted supply of the precious metal. Though government has allowed several banks to supply the precious metal to gold jewellery exporters under the various schemes, it has still not become operational due lack of a simplified/practical procedure and a rationalised rate of import duty to be given as bank guarantee inthe event of a default.