Jewellery exports to US seen rising 25 per cent to $5.88 bn

Owing to increased demand from the Americans, the Gems and Jewellery Export Promotion Council (GJEPC) expects a 25 per cent increase in exports to the US at $5.88 billion during this financial year compared with $4.7 billion in the previous financial year.

A huge potential for jewellery exports lies in places such as Latin America, Canada, West Indies etc which Indian exporters have been trying to exploit since long. The Indian jewellers are confident that participating in JCK - Las Vegas 2006 (June 3-7), would open a new opportunity for them to send their consignments to the US and neighbouring areas for better realisation which is evident from the huge number of exhibitors enrolled so far.

About 10,000 visitors are estimated to witness the many enlightening designs by about 2,700 designers spread over 100 booths where approximately 190 exhibitors would be showcasing their products and designs.

Gems and jewellery exports to the US accounts for 28 per cent ($4.7 billion) of India's total exports of $16.6 billion, thus, making the US the largest export destination for the sector. India has been one of the largest suppliers of mass produced jewellery to the US. The gems and jewellery industry is facing the challenge to retain investment within the country by preventing migration and enhancing competitiveness. To tackle these factors, GJEPC has requested the government to implement a turnover-based tax which will enable the industry to compete effectively. With this simplified tax regime, the foreign direct investment (FDI) in the sector may rise upto $2 billion by 2006-07.

In lieu of this, GJEPC is awaiting the committee's report set up in the aftermath of the Budget proposal announced this year in this regard. The report is expected by September 30. Other areas of concern for the sector are the need for better trade facilities.