Indian Gem and Jewelry Exports Up 22.27%

India’s total gem and jewelry exports rose to $20.88 billion from $17.08 billion in the previous financial year, a growth of 22.27 percent. These results were announced by Sanjay Kothari, chairman of The Gem and Jewellery Export Promotion Council (GJEPC) at a press conference in Mumbai Tuesday.

Exports of cut and polished diamonds, representing 68 percent of total exports, reached $14.18 billion in the 2007-08 fiscal year, compared to $10.89 billion in the previous year, a growth of 30.19 percent.

Gold jewelry exports of both plain and studded jewelry grew by 8.07 percent to touch $5.62 billion – up from $5.20 billion in the previous year – representing a 27 percent share of the gems and jewelry exports.

Colored gemstone exports grew 12.15 percent to $276.42 million in 2007-08, compared to $246.47 million in the previous year.

Total gem and jewelry imports increased to $18.50 billion in fiscal 2007-08, from $13.97 billion. Rough diamond imports amounted to $9.79 billion, gold bar imports were worth $2.54 billion and cut and polished diamond imports added up to $5.43 billion.

However, the massive increase in polished diamond imports from $2.026 billion in 2006-07 to $5.43 billion in 2007-08, shows that there has been a marginal decrease in manufacturing activity, despite a major spurt in trading activity.

Furthermore, increasing gold prices have had an impact on gold jewelry exports, indicating that the overall manufacturing activity has declined to some extent.

Kothari pointed out that, among the factors negatively affecting the gem and jewelry industry were the U.S. recession, the slowing of jewelry sales and the depreciation of the rupee. He also acknowledged that this has led to a loss of some 150,000 jobs in the sector.

Some of the future initiatives announced by the chairman to boost the export sector were related to rough diamond sourcing, particularly from the African countries; focused market promotion with an emphasis on building Brand India; the development of a Trend Cell; talent development and a focus on design and innovation. 

The country would make efforts towards initiating generic promotions of diamond jewelry by international organizations. IDMA has already come forward to pledge its support to any such move by world bodies and the CIBJO conference currently underway in Dubai, which was being attended by the Vice-Chairman of the Council Vasant Mehta, is also expected to make a similar commitment, Kothari said.