India eyes $7 bn jewellery market in CIS, East Europe

In an attempt to achieve $20 billion (Rs 87200 crore) export target in 2007-08 (April-March), Indian diamond and jewellery exporters are likely to forge alliances with prominent companies in Commonwealth of Independent States and East European nations, a senior industry official said.

"The CIS countries and East European countries offer tremendous business potential to Indian gem and jewellery sector, with a market size of $6-7 billion (Rs 26200-30500 crore)," Sanjay Kothari, chairman, Gem & Jewellery Export Promotion Council, said.

Last week, the council organised a buyer-seller meet, where a 70-member delegation representing 60 companies from 12 CIS and East European countries like Poland, Czech Republic visited 26 prominent Indian exporters in Mumbai to enhance bilateral relations, he said.

The delegation has shown interest in buying plain and diamond-studded jewellery designs made in 18, 21, and 22 carat gold, platinum and silver, besides diamonds and coloured stones, Kothari said.

A couple of months back, a Gem & Jewellery Export Promotion Council delegation had visited CIS countries to enhance trade there.

"We are clearly focussed on CIS markets in line with commerce ministry's efforts and expect to seal some deal in coming days," Kothari said.

With exports of over $16.5 billion in 2005-06, the gem and jewellery sector is one of the largest foreign exchange earner for the country.

In February, Indian gold jewellery exports grew 41 per cent on year to Rs 21350 crore. However, overall sector exports rose just over 5 per cent, mainly due to fall in diamond exports.