Exports of gold jewellery contracted by 25.13 percent to $1 billion during the first quarter of the financial year, from $1.36 billion a year ago.
Exports of gold medallion and coins too fell by 9.51 percent to $1.48 billion. The government is hoping that incentives such as 3 percent interest subsidy, and an enhanced rate for duty drawback would help to contain the decline in exports.
According to the Jewellery Export Promotion Council, imports of rough diamonds rose by 13.27 percent to $6 billion in April-July 2016. Imports of gold bars too grew by about 40 percent.
After rising for the first time in 18 months in June, total exports shrank again in July, contracting 6.84 percent due to decline in shipments of engineering goods and petroleum products. Gold imports more than halved in the month.