Gems, jewellery exports up 22%

Exports of gems and jewellery has increased 22.26 per cent to $10,646 million in calendar year 2003 compared to $8707.61 million in calendar year 2002.

Armed with these figures, the Gems and Jewellery Export Promotion Council (GJEPC) has launched a campaign for reduction in trade credit period.

The four national diamond and jewellery associations, GJEPC, Bharat Diamond Bourse, Diamonds Exporters Association and Bombay Diamond Merchants Association, have jointly decided not to extend credit beyond 90 days as against current 8-9 months.

GJEPC has taken up this matter with export finance and other financing agencies. It suggested amendments in the Exim policy to reduce circular trading in rough diamond and plain gold coins flouting the incremental licence benefit.

Sanjay Kothari, chairman of GJEPC, said, "The Indian gems and jewellery industry is the world's largest manufacturing centre for cut and polished diamonds contributing to 60 per cent of the world's supply in terms of value, 85 per cent in terms of caratage and 92 per cent in terms of pieces. We cannot give credit to developed countries".

He said the industry would achieve the $16 billion export target set for 2007. According to GJEPC data, net polished exports rose 10.43 per cent to $7,043.91million from $6,370.22 million.

Exports from competitor Israel fell 25 per cent while there was 2.19 per cent rise in Belgium's net exports.

GJEPC has devised schemes to develop expertise and appointed KPMG to recommend strategies to boost exports. It wants the sector to become a forerunner in trade, in addition to manufacturing strengths.

The abolition of special additional duty (SAD) of 4 per cent was expected to stimulate export growth.

The reduced import duty on 19 carat gold would also encourage investment by Italian companies. This was discussed with the Italian trade delegation that visited India in December.

A study done by A.F. Ferguson has revealed that child labour has gone down from 0.9 per cent last year, to 0.3 per cent this year.

GJEPC has set up the Indian Institute of Gems and Jewellery (IIGJ) along with jewellery product development centres (JPDCs) for courses on jewellery crafting and manufacturing.

It was also working with the National Institute of Fashion Technology to develop new trends and designs.