Annual Polished Diamond Exports from India Rise 6.07 percent

Exports of gems and jewelry from India increased 6.32 percent to $16,669.11 million during the fiscal year ended March 31. Exports of polished diamonds increased 6.07 percent to $11,860.49 million from $11,181.56 million in the corresponding period last year.

GJEPC report that gold jewelry exports grew 1.28 percent to $3,861.57 million. However, the biggest growth was in exports of colored gemstones, which increased 21.05 percent to $233.32 million.

GJEPC chairman Bakul R. Mehta said the gem and jewelry sector continues to be “the frontrunner and highest contributor” to the Indian economy, contributing $3.5 billion in full year 2006.

The organization says that the diamond and jewelry industry has grown consistently by 15-20 percent a year. However the last two quarters of full year 2005-06 were characterized by diminishing exports, which GJEPC blames on the “market slow down” in the U.S., the largest export destination for the Indian industry.

The current sentiment says Mehta, is that the industry has achieved remarkable growth in its previous years and has now reached a stage where it needs to consolidate and focus on value addition and increasing the value chain. To that end, it’s marking 2005-06 as 'year of consolidation' and looks forward to transform and establish itself as a global trading hub for gem and jewelry.

The GJEPC welcomed the new trade initiatives suggested by the commerce minister earlier in the week to build India's position as an international hub.

The top export markets for Indian gems and jewelry were the U.S., Hong Kong and the UAE. These three destinations accounted for 28 percent, 21 percent and 15 percent of the total exports (respectively). They were followed by Singapore and Belgium, which accounted for 9 percent and 8 percent respectively.

Total imports of gem and jewelry to India grew by 11.79 percent, with imports increasing from $11,640.21 million in 2004-05 to $13,013.11 million for full year 2005-06.

Rough diamond imports reached $8,708.98 million, gold bar imports totaled $856.60 million, while polished diamond imports reached $ 3,009.02 million.