New Delhi, April 22 India's gold jewellery industry retained its sheen in 2008-09 despite the economic slowdown by posting 23.64 percent growth in exports, an industry lobby report said on Wednesday.

According to the report by the Gem and Jewellery Export Promotion Council (GJEPC), the gold jewellery exports grew from $5.54 billion (Rs.22,315 crore) in 2007-08 to $6.85 billion in 2008-09.

However, diamond exports declined 8.24 percent from $14.19 billion in 2007-08 to $13 billion in 2008-09, it added.

However, in rupee terms, the diamond sector showed an increase of 2.68 percent with exports rising from Rs.57,117 crore in 2007-08 to Rs.58,649 crore in 2008-09.

The gems and jewellery industry, according to the report, registered 1.45 percent growth in exports last fiscal despite a decline of 18.88 percent in the second half.

"The gems and jewellery exports grew 1.45 percent to $21.11 billion in 2008-09 from $20.81 billion in 2007-08," it said.

The sector accounted for 13 percent of India's total merchandise exports.

Coloured gemstone exports decreased 3.68 percent in dollar terms from $276.11 million in 2007-08 to $265.95 million last fiscal.

The United Arab Emirates (UAE) was the largest exporting destination with 31 percent of exports, followed by Hong Kong with 25 percent and the US with 20 percent.

"The US slowdown in the second half of 2009 affected the industry greatly and gems and jewellery sector witnessed a decrease in exports in the last two quarters of the year," GJEPC chairman Vasant Mehta said.

In spite of the slowdown in the second half last fiscal, the industry could achieve a flat growth and performed reasonably close to its target of $21.9 billion, he added.