India’s gem and jewellery exports posted a modest growth of 1.45 per cent during 2008-09 at $21.1 billion, primarily driven by gold jewellery exports, including medallions and ornaments. The country exported $20.8 billion of gem and jewellery in 2007-08.
Addressing a news conference here to highlight the gem and jewellery industry’s export promotion here, the Gem & Jewellery Export Promotion Council (GJEPC) Chairman, Mr Vasant Mehta, conceded that due to the slowdown of the US economy in the second half of last fiscal, the gem and jewellery industry saw a decline of close to 19 per cent in its second half exports.

But the overall modest growth of 1.45 per cent was rendered possible thanks to a 24 per cent growth in gold jewellery exports from $5.5 billion in 2007-08 to $6.9 billion in 2008-09. However, thanks to the continuing weakness of the Indian rupee vis-À-vis the US dollar, gem and jewellery exports in 2008-09 showed up a 14 per cent growth at Rs 95,092 crore, against Rs 83,765.48 crore in 2007-08.

Overall exports : Mr Mehta said that the overall export for 2008-09 was close to the Council’s target of $21.9 billion on the heels of a substantial demand in the first half of the last fiscal and augmented gold jewellery exports to the United Arab Emirates (UAE) which has become, by far, the largest exporting destination accounting for 31 per cent of India’s exports. This was followed by Hong Kong with 25 per cent and the US with 20 per cent. The gem and jewellery sector accounted for 13 per cent of India’s total
merchandise exports.
Source: The Hindu Business Line

The Reserve Bank of India (RBI) has further eased the external commercial borrowing (ECB) norms for banks to issue ‘no objection’ under the Foreign Exchange Management Act (Fema), 1999. Under the relaxed norms, ‘no objection’ by banks can be extended for issue of corporate guarantee in favour of the overseas lessee and for operating lease for import of aircraft, helicopters and engines.

The RBI, however has clarified that the ‘no objection’ is issued only under the provisions of Fema, 1999 and should not be construed as an approval by any other statutory authority. Further, the ‘no objection’ should not be construed as regularising or validating any irregularities, contravention or other lapses, if any, under the provisions of Fema or any other laws or regulations.

Consequently, the amendment to the Fema will be done with immediate effect. So far, banks were allowed to extend ‘no objection’ to companies and entities for creation of charge on immovable assets, financial securities and issue of corporate or personal guarantees in favour of overseas lenders, to secure the ECB to be raised by the borrower. This relaxation was made in 2008.
Prior to that, the rules on ECBs were relaxed for permitting banks to allow payment of lease rentals, opening of letters of credit towards security deposit, etc in respect of import of aircraft/aircraft engine/helicopter on operating lease basis.

The ‘no objection’ to the Indian importer for issue of corporate guarantee may be conveyed after obtaining board resolution for issue of corporate guarantee from the company issuing such guarantees and after specifying names of the officials authorised to execute such guarantees on behalf of the firm.

Source: Business Standard

India’s cumulative value of exports for the period April- February, 2008-09 was US $ 156597 million (Rs.705231 crore) as against US $ 145878 million (Rs.586233) registering a growth of 7.3 per cent in Dollar terms and 20.3 per cent in Rupee terms over the same period last year. Exports during February, 2008-09 were valued at US $ 11913 million which was 21.7 per cent lower than the level of US $ 15221 million during February, 2008. In rupee terms, exports touched Rs.58685 crore, which was 3.0 per cent lower than the value of exports during February, 2007-08. India’s imports during February, 2008-09 were valued at US $ 16823 million representing a decrease of 23.3 per cent over the level of imports valued at US $ 21934 million in February, 2007-08. In Rupee terms, imports decreased by 4.9 per cent. Cumulative value of imports for the period April- February, 2008-09 was US $ 271687 million (Rs.1223213 crore) as against US $ 228081 million (Rs.917179 crore) registering a growth of 19.1 per cent in Dollar terms and 33.4 per cent in Rupee terms over the same period last year.

Oil imports during February, 2008-09 were valued at US $ 4047 million which was 47.5 per cent lower than oil imports valued at US $ 7713 million in the corresponding period last year. Oil imports during April- February, 2008-09 were valued at US $ 89684 million which was 26.8 per cent higher than the oil imports of US $ 70704 million in the corresponding period last year. Non-oil imports during February, 2008-09 were estimated at US $ 12776 million which was 10.2 per cent lower than non-oil imports of US $ 14222 million in February, 2007-08. Non-oil imports during April- February, 2009 were valued at US $ 182003 million which was 15.6 per cent higher than the level of such imports valued at US $ 157376 million in April- February, 2007-08. The trade deficit for April- February, 2008-09 was estimated at US $ 115090 million which was higher than the deficit at US $ 82203 million during April- February, 2007-08.