Diamond jewellery exports grow by 39 per cent

If the recent observations of the diamond industry experts and diamond jewellery makers are to be considered, India soon will be a world leader of branded and non-branded diamond jewellery.

What more, the domestic market too is showing a positive growth trend. Over the last few years, many diamond polishers and cutters from the country's 'diamond city,' Surat, have established their names as makers of branded diamond jewelleries.

After consolidating their positions in the domestic market, they are now eyeing the global market.

A look on the export performance of the Indian gems and jewellery industry recorded a 38.33 per cent year-on-year increase during the last calendar year.

During the same period, the increase of export of cut and polished diamonds was only 16.37 per cent.

"While India exported gems and jewelleries worth $1,342.03 million in 2002, the total exports stood at $1856.45 million in December, 2003. On the other hand, exports of cut and polished diamonds increased only by 16.37 per cent," said an official with the Gem & Jewellery Export Promotion Council (GJEPC).

According to him, exports of jewelleries, especially diamond jewelleries is expected to rise at least by 40 per cent during this calendar year. "While the branded diamond jewellery segment is expected to rise by over 20 per cent in this year, we expect the total diamond jewellery market to grow by around 40 per cent during the period," he said. "With Indian women showing more interest on buying diamond jewelleries than gold jewelleries, we are now setting up extensive marketing chain of our Cygnus brand of diamond jewelleries in India,'' said Vasant Gajera, chairman, Laxmi Dia Jewel Pvt. Limited.

"We had launched it in the United States four years ago thinking that India was not a good market for diamond jewelleries," he added. He said the perception about the branded jewelleries are changing in India and the market is expanding very fast.

Pravin Nanavati, former president of Surat Diamond Association and a leading diamond merchant in Surat said, "The branded diamond jewellery market in the world is pegged at Rs 2,50,000 crore and till last year, India's contribution was around 2 per cent. But that is now growing very fast and expected to increase India's stake to around 5 per cent in next two-three years."

To cash in on the growth trend, Surat diamond merchants, with the help from the state government, are now developing a Gem and Jewellery Park in Surat.

The park is expected to increase the Indian jewellery exports as the park will get all the benefits availed by a Special Economic Zone.

According to Nanavati, more and more diamond merchants from Surat are entering into the branded jewellery market segment.