Bank frauds taking the sheen off India's gems and jewellery exports

Going forward, the pace of exports of gems and jewelry would take cue from the availability of funding in the aftermath of the bank fraud

It was supposed to add sparkle to India’s more than $300-billion export sector. But the gems and jewelry industry is doing quite the opposite -- making it look dull.

Gems and jewelry exports fell 16.6 percent from a year ago to $3.4 billion in March, the second straight month of contraction that acted as a drag on overall exports, according to commerce ministry data released on Friday. That has pushed India’s trade deficit deep into the red and given more ammunition to rupee bears, who have driven the currency to a five-month low.

The trade deficit was at $13.7 billion