News: Indian gems, jewellery sector to touch $20 b in 2007

(PTI 17/09/2006) New Delhi - Gems and jewellery exports from the country are likely to touch $ 20 billion by 2007 with buyers from the US and European Union increasing bulk purchases of diamond studded jewellery from India because of its affordability, according to a report.

The study by ICRA said India has achieved a reputation of being world's leading diamond cutting and polishing centre for smaller stones. Now industry leaders are looking to process larger stones to clock greater growth by utilising modern advanced technologies besides cheap abundant labour.

Quoting figures released by GJPEC, ICRA said exports of gems and jewellery were expected to touch $ 20 billion by 2007.

Although, the positive development in the industry has also been due to pick up in demand in major markets like the US, Belgium, Israel and Hong Kong and decline in growth of its major competitors.

The improved performance of the Indian GJ( Gold and Jewellery) industry is also due to the decline suffered by its competitors like Belgium whose polished diamond export declined by 3.8 per cent in 2005 to 9.36 million carats. The volumes of Israel's polished diamonds also decreased by 3.2 per cent in 2005 to 4.49 million carats.

Exports of gold jewellery have increased to Rs 17,015 crore in 2006 from Rs 5,220 crore in 2001, but are constrained by an inability to compete in global markets on the basis of price and superior design capabilities, the report said.

However, India has a positive future in gems and jewellery sector that would be driven by increased exports to the US and other markets and growth in domestic consumption, the report said.