Finished jewellery exports seen up by 35-40%

"We are going to put thrust on this segment as it holds the maximum potential for growth. In this way, we would also be able to create more jobs in the country," Mehta told CRISIL MarketWire in an interview.

In 2004-05 (April-March), finished jewellery exports saw a whopping rise of 42.3 per cent to $3.9 billion. This also led the total gem and jewellery exports to rise 29.3 per cent to $15.7 billion during the year.

In 2005-06, the segment is expected to rise to $5.5 billion, a rise of over 40 per cent.

"India is doing well in almost all aspects of raws. In finished we are at a nascent stage. Finished jewellery segment currently constitutes 24 per cent of the total gem and jewellery exports," he added.

In 2004-05, the total gem and jewellery exports were at $15.7 billion, up 29.3 per cent. This was higher than government's target of $13.3 billion. Our exports target for 2005-06 is $18 billion and for 2006-07 $20 billion, Mehta said.

Jewellery exports will have to be the thrust area for the years to come and then only our export target for 2006-07 at US $20 billion and 2014-15 target at $50 billion are achievable, he added.

"Our strength is due to cost competitiveness of our exports. We have a good availability of raw materials here "" diamonds, coloured gemstones and all precious metals and low-cost skilled workforce," he said.

"Our target markets will be the US, Europe, Asean countries and the Middle East."

This will require a thrust on the finished jewellery segment, which will in turn work towards transforming India from a manufacturing centre to a trading hub.

There is a need for forward integration from cut and polished diamonds and coloured gemstones to studded jewellery manufacturing.