Indian gem and jewelry industry records 22.27% growth

Indian gem and jewelry industry records 22.27% growth
By JCK Staff
JCK India, Apr 16, 2008
JCK India, India

Hong Kong emerged as the largest export market for cut and polished diamonds with a share of 35 percent while the US and UAE stand at second and third position with 24 percent and 13 percent share respectively.

The Indian gem and jewelry industry has registered 22.27 percent growth rate amounting to total exports of US$ 20.8 billion (INR 84,058.19 crores) in 2007-08 against US$ 17.1 billion (INR 77,100.12 crores) in the previous year. The gem and jewelry sector accounted for 13.41 percent of India’s total merchandise exports.

The Gem and Jewellery Export Promotion Council (GJEPC) released the financial results for 2007-08 on April 15. Export of cut and polished diamonds which was the performance driver for the period in consideration amounting to nearly 68 percent of the export basket, grew from US$ 10.9 billion (INR 49,156.28 crores) in 2006-07 to US$ 14.2 billion (INR 57,061.45 crores) in 2007-08. Hong Kong emerged as the largest export market for cut and polished diamonds with a share of 35 percent while the US and UAE stand at second and third position with 24 percent and 13 percent share respectively.

Export of colored gemstones and others grew from US$ 246.4 million (INR 1112.33 crores) in 2006-07 to US$ 276.42 million (Rs 1112.32 crores) in 2007-08.

The export of gold jewelry rose by 8.07 percent with total exports amounting to US$ 5622.41 million (Rs 22624.59 crores) in 2007-08 as compared to US$ 5202.48 million in 2006-07 (Rs 23478.81 crores).

Commenting on the results, Sanjay Kothari, chairman, GJEPC, said, “The industry has maintained a steady rate of growth this year too, but this growth is the result of an increase in trading activities as actual manufacturing has shown a decline. Due to the volatility of gold prices and international economic scenario, demand for gold jewelry has witnessed a slack worldwide.

Kothari further stated that “What is more remarkable about this performance is that they have been achieved in the face of an appreciating rupee, high interest rates, withdrawal of GSP benefits and a general economic slowdown in our major markets.”

Efforts from Government
In March 2008, Jairam Ramesh, minister of State for Commerce led a delegation to Angola and Namibia so that India can directly source rough from these countries. A Joint Working Group has been formed between Namibia and India to prepare a detailed plan for long term partnership in the diamond sector. The Indian government is also planning to set up factories and training institutes.

The delegation in Angola, talked over plans for ENDIAMA, a diamond mining company, to shortly open an office in India. Angola has invited Indian diamond companies to set up factories and training institutes in Angola. The council has invited the president of Angola as the chief guest for “Mines to Market 2009”.

Brand India
GJEPC is planning to reposition the Indian gem and jewelry as the “Epitome of Luxury” by developing programs such as the ‘Brand India’ promotions. This program is the council’s initiative to promote Indian jewelry to the end users in markets like USA, China, Middle East, CIS, Russia and India.

The Council has also requested the International Diamond Manufacturers Association (IDMA) and CIBJO (World Jewelry Trade Federation) to present a report on the capacity of mines worldwide for supply of rough diamonds so that it will bridge the gap between the demand and supply of rough diamonds available.

The Council has decided to focus on design and innovation and for that it has joined hands with NIFT and NID. This initiative will further focus on the training and development aspects of the students to ensure development of merchandise that will appeal to shoppers’ changing tastes.