India has seen a steep decline in exports of cut and polished diamonds.
According to The Hindu Business Line, exports fell sharply in February due to the 2% duty on imports that the government imposed.
Industry analysts say that the exports of cut and polished diamonds fell by 50% in February. The data was compiled by the Gem and Jewellery Export Promotion Council, an organization that promotes India’s diamond trade.
The government imposed the duty in January in order to exert greater control over the practice of repeated export and import of the same diamonds.
A hike in duty on gold imports has also caused a drop in the exports of gold jewelry, The Hindu Business Line reported. Aside from the duty, analysts also point to a drop in demand for gold in the United States.
The GJEPC did not, however, that India’s total gem and jewely exports in the period between April 2011 and February 2012 were up 8.3%. Silver jewelry exports were also up, with overseas sales during the same period rising by 42%.