US duty not likely to hit jewellery exports

The likely duty by the US on jewellery imports from India is a cause of concern, but trade officials are confident that they will overcome it.

The US is India's largest export market and accounted for 28 per cent of the country's jewellery exports at $4.74 billion during March-April 2005-06.

As part of preferential treatment agreement, jewellery imports from India and Thailand are exempted from duties in the US.

US normally levies a duty of 6 per cent on its imports of gems and jewellery.

Currently, there is no duty imposed on imports by the US as part of the bilateral trade talks, Bakul R Mehta, chairman, Gem and Jewellery Export Promotion Council (GJEPC), said. India's gems and jewellery exports rose 6.32 per cent to $16.67 billion during 2005-06.

Apart from the US, the country's exports basket includes Hong Kong, Singapore and Belgium.

Traders said the sector will grow 20-25 per cent in 2006-07 aided by opportunities in the diamond sector.

GJEPC is organising the India International Jewellery Show in Mumbai from May 4 to 8. The event will focus on boosting domestic exports.

"It is not only an event to market our products, but it shall also give a true reflection of the stock (inventories) in the sector," Mehta said.

The four-day event will see around 30,000 visitors and delegates from Thailand, Bangladesh, Italy, Hungary, Cyprus, and Poland.

Domestic manufacturers, wholesalers, retailers, and some corporates are expected to participate.