Fewer orders from western markets have resulted in a 39.3 percent decline in February gems and jewelry exports to $2.7 billion, according to India’s Gem and Jewellery Export Promotion Council.
The biggest losses among India's gemstone and jewelry manufactures were led by a 53.7% drop in polished diamond orders, followed by a 30.3 percent drop in gold jewelry exports. Exports of rough diamonds fell by 15.6 percent for the period and colored gemstones fell by a more modest 3.7 percent.
Gains for the month were led by silver jewelry (39.5 percent) and gold medallions and coins (15.7 percent).
GJEPC, the organization the leads the India gems and jewelry industry, reportedly blames the decline on fewer orders from the U.S. and Europe, whose economies are still struggling. Other major export markets for the gem and jewelry manufacturers are the UAE and Hong Kong.
The organization also reported that gems and jewelry exports increased by 4 percent from April 2011 till February.