Gems and Jewellery exports declined by 14.5 per cent to $25.95 billion during the first ten months of the current fiscal due to slowdown in global demand.
In the April-January period of last fiscal, the exports stood at $30.35 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).
Besides global slowdown, the rejection of consignments is one of the reasons for dip in the value of exports.
During the ten-month period of the current fiscal, consignments worth $5.15 billion were returned as compared to $2.73 billion during the same period previous year.
The sector contributes about 14 per cent to the country's overall exports.
Exports of cut and polished diamonds fell to $15.83 billion during the ten-month period from $19.11 billion a year ago.
Similarly, shipments of gold jewellery contracted to $3.22 billion from $5.54 billion during April 2014 - January 2015.
Exports of gold medallion and coins, however, increased to $4.50 billion during the ten-month period of this fiscal from $2.03 billion in the same period previous fiscal.
Dip in gems and jewellery exports has also impacted the overall outbound shipments of the country.
Exports dipped for the fourteenth month in a row, down 13.6 per cent in January to $21 billion due to fall in shipments of petroleum and engineering goods, although trade deficit showed improvement.
The government is hopeful that incentives such as 3 per cent interest subsidy and enhanced rate for duty drawback could help contain the decline.