RBI acts on bank credit terms to boost India's jewellery exports

MUMBAI (Scrap Monster) :  A day after the country’s export promotion body projected significant decline to hit Indian jewellery exports by 2014, the Reserve Bank of India (RBI) has arbitrated to amend bank credit terms to boost Indian jewellery exports.

The Gems and Jewellery Export Promotion Council (GJEPC) on Sunday had warned of 15-20% decline in jewellery exports by 2014 due to scarcity of gold stocks in the domestic market following the government’s restrictions on gold imports. The Council pointed out that the manufacturers are presently faced with limited stocks to manufacture gold. A further slump in gold imports would hit the jewellery exports of the country gravely. The GJEPC’s forecast was subsequent to its series of parleys with banks, RBI officials and the World Gold Council (WGC). India’s gems and jewellery exports during 2012-’13 were worth $ 39 billion.

Addressing the concerns raised by the export body, the RBI acted upon immediately by implementing necessary revisions to the bank credit terms to boost exports. The country’s central bank stated today that jewellery exporters would be allowed to avail loans from banks and other financial institutions to import gold, which could crack the shortage woes. The RBI’s move is aimed at lifting jewellery exports. RBI has also strictly instructed the banks to ensure that the credit facilities continue to remain blocked for those entities which do not export gold jewellery.