Gems and jewellery exports up 31%

Gems and jewellery saw a 31 per cent growth in exports to $11.9 billion in 2003-04, against $9.13 billion in the previous year. The growth was driven by a 21.32 per cent increase in diamond exports and a 68 per cent rise in the gold jewellery segment.

"The gem and jewellery export promotion council (GJEPC) has targeted $16 billion exports by 2007. It also intends to make India into a trading centre than the manufacturing hub it is at present," GJEPC chairman Sanjay Kothari said while announcing the annual results. He added KPMG had been appointed to study the potential of the industry.

Kothari said the council would be investing Rs 1000 crore to set up 'Bharat diamond booths' in Mumbai to promote the diamond business. The council also had extensive marketing plans, apart from intentions to establish various sector specific divisions.

He said that the council expected to achieve $13.5 billion exports in 2004-05.

Kothari said that with respect to diamonds their growth would plateau out soon but export of gold jewellery was an area of concern. Despite a 68 per cent growth achieved this year, Indian share in the world market was a measly 10 per cent. The council expected to increase its share to 15 per cent next fiscal.

He said that the coloured gemstone was the only sector which witnessed a decline by 7 per cent mainly on the account of workers in Jaipur moving towards jewellery business thus boosting the growth in latter.

Kothari said that the rupee appreciation did not affect the sector much as long as the exchange rate did not fluctuate for a long period of time.

Commenting on the good performance in the gems and jewellery sector, he said that the growth was mainly on the account of greater acceptability of Indian jewellery in international markets. This in turn was due to better and more contemporary designs devised with the help of experts from Italy and Germany.

Highlighting the growing demand for skilled personnel in the industry, he said the council that had set up two institutes in Mumbai and Jaipur, planned to take it to other cities also. As a part of the council's efforts to further promote the trade, Kothari said it was working in tandem with states to set up gems and jewellery parks.