Exports of gems and jewellery fell by 15 per cent during April-June 2001 to $1,446 million as against $1,709 million in the same period last year.
The main reason for the fall in exports is the slowdown in the US economy, a senior official of the Gems and Jewellery Export Promotion Council (GJEPC) said.
"There has been a fall in exports, but it is marginally higher in comparison to 1999 when exports in the three-month period were around $1,437 million. Since exports in the year 2000 was exceptionally good due to the millennium hype, we cannot compare the decrease of this year with exports with 2000," Sanjay Kothari, chairman of the council said here.
The fall in exports of gems and jewellery were directly related to the US economy since "40 per cent of our gems and jewellery exports go to the US."
GJEPC has fixed an export target of $8 billion in 2001-02 and the chairman said the council was confident of achieving it. However, he added Indian jewelers would still require the conducive environment from the government. During 2000-01, exports from the sector stood at $7.77 billion.
"China is fast emerging as a competitor to India in the processing of roughs, as it enjoys the same advantages of economies of scale and cheap labour. Therefore, to maintain our market and expand it, the Indian industry would require a conducive growth environment," Kothari added.
Gems and Jewellery constitute one-fifth of the country's total exports.
Kothari said in order to promote Indian jewellery in the foreign markets, the council would be taking a trade promotion delegation to the Middle East markets next month.
In order to promote and showcase Indian jewellery, GJEPC would be conducting a four day "India International Jewellery Show". Kothari added, "The show beginning on September 28 would be in tune with the Bangkok and Hong Kong show giving buyers and interested parties an opportunity to drop in India on their way home."
He said, the council was shifting its focus on traders only, and the show would be a 'trade only' show for three years. "The show would be in line with all major international jewellery shows in addition to establishing it as a serious business environment," the chairman stated.
Some major sponsors to the show are De Beers, Argyle Diamonds, Platinum Guild International and the World Gold Council, he added.
