Centre mulls brand development fund for jewellery sector

The Centre is charting out a plan to set up a brand development fund for the jewellery sector to make Indian brands more competitive in the global arena, said Union minister of commerce and industry Kamal Nath during his visit to the India International Jewellery Show 2004 in Mumbai on Friday.

"An action plan for the gem and jewellery sector will be worked out to give the industry a thrust. The government is working towards a more comprehensive national trade policy, under the Exim Policy with a twin emphasis on export growth and employment generation," he said.

He added that India should target an export growth of 25 per cent, and the current target should be $15 billion, instead of the present target of $13.3 billion.

He also said the government would enable the Gems and Jewellery Export Promotion Council (GJEPC) to achieve a target of $20 billion worth exports in the next three years.

"While we consolidate our position in traditional markets like America, Europe and the Middle-East, we must also focus on emerging markets," he said.

Pointing out that India's share of cut and polished diamonds is only 55 per cent in value terms compared to 92 per cent in terms of each unit, the minister said it was imperative to increase the value addition in this sector to improve the net foreign exchange earnings.

Speaking about the severe shortage of rough diamonds availability, the minister said talks were on with the Metals and Minerals Trading Corporation (MMTC) and the State Trading Corporation (STC) to thrash out a solution.

"We should emphasise on promotion of the forward and backward linkages, including consolidation of our position in the small diamond sector, syndicating buying of rough diamonds and getting controlling stakes in mine-heads through joint ventures and tie-ups," he said.