Currency impact: A burnished rupee takes polish off jewellery exports

A burnished rupee takes polish off jewellery exports

The second of a four-part series on the impact of a strong rupee on key export-oriented industries looks at the jewellery sector

The rupee’s five per cent appreciation against the dollar has changed the dynamics of jewellery exports from India.

The change is significant, especially in the context of jewellery players facing headwinds with intermittent recovery in demand, both in domestic and overseas markets.

Ninety per cent of the raw material cost is dollar-based or import-driven.

Since the Rs 3.75-lakh crore jewellery industry in India has profit margins of four to five per cent, the rupee appreciation can potentially