Jewellery exporters eye $4.5bn target by 2007

India can increase jewellery exports by three times in the next four years. India's jewellery export in the year 2002-3 stood at $1.5 billion, contributing only 17 per cent of the total gem and jewellery market globally dominated by cut and polished (C&P) diamonds. The country is seeking to take it up to $ 4.5 billion by 2007.

"India has emerged the largest exporter of diamond with 92 per cent of all diamonds being processed here. However, we have been unable to make the value addition by fitting them with jewellery items," Sanjay Kothari, chairman of Gems and Jewellery Export Promotion Council (GJEPC) said in Kolkata on Wednesday.

"One major export market for C&P diamond is Hong Kong but they are major exporters of jewellery. India should take this opportunity and increase volumes," he added.

Apart from diamond studded jewellery, there were also immense opportunities in segments like plain gold jewellery and gemstone jewellery. Italy was world leader in plain jewellery made of low carat, lightweight gold.

Kothari pointed out that Italian firms should be allowed to sell their product in India and set up manufacturing units. Import duty on jewellery was 35 per cent and this was very high.

"Only if they are allowed to import cheap and sell in domestic market, will there be possibility of a manufacturing base here. This will expose Indian companies to their products and design to learn the art of lightweight jewellery making," Kothari argued.

The other area with a bright future was gemstone jewellery. Thailand was the market leader at present. Jaipur in India has been identified as the centre for gemstone since there were traditional pockets of excellence in this field.

In an attempt to further increase export of jewellery, GJEPC would urge central and state governments to set up special economic zones (SEZ).

Apart from that, it would campaign for development of clusters under the cluster development scheme.

Another SEZ could come up in Jaipur for gemstone jewellery.

GJEPC has identified Howrah, Coimbatore and Rajkot for development of clusters. However, the proposal was still in the initial stages.

Apart from jewellery, the trade felt India could emerge as a major trading centre for diamonds. GJEPC said it was hopeful income-tax rebate accorded to SEZ and EoU manufacturing units would be extended to trading.