MUMBAI (Reuters) - India's gem and jewellery exports rose 16 percent in 2009/10 compared to the same period a year ago, driven by increased sales of cut and polished diamonds.

Exports rose to $28,414.64 million in FY10 from $24,495.58 million in FY09, the Gem and Jewellery Export Promotion Council said in a release.

Cut and polished diamond exports rose 20 percent to $17,542.29 million whereas gold jewllery exports increased 9 percent to $9,424.33 million.

Gem and jewellery exports contribute 13 percent to India's total merchandise exports.

(Reporting by Nandita Bose; Editing by Sunil Nair)