The Hindu Business Line : Gem & jewellery exports surge by 31 pc

GEM and jewellery exports, which account for one-fifth of the country's exports in value terms, surged by 31 per cent during the fiscal year 2003-04 to touch $ 11.99 billion against $ 9.14 billion recorded during the previous year.

In rupee terms, gem and jewellery exports grew by about 24 per cent during 2003-04 at Rs 54,919 crore against Rs 44,080 crore.

"We have been able to surpass the target of $ 10 billion set by industry for 2003-04. The industry has a vision to achieve $ 16 billion mark by 2007. The export target for 2004-05 is likely to be pegged at about $ 13.5 billion," Mr Sanjay Kothari, Chairman, the Gem and Jewellery Export Promotion Council, told newspersons here.

Diamond exports have recorded a growth of 21.32 per cent in dollar terms and 15.30 per cent in rupee terms during 2003-04. Total diamond exports in 2003-04 stood at $ 8.63 billion (Rs 39,545 crore) against $ 7.11 billion (Rs 34,298 crore).

Gold jewellery exports during 2003-04 increased by about 68 per cent in dollar terms at $ 2.55 billion against $ 1.50 billion. In rupee terms, gold jewellery exports increased by 59 per cent at Rs 11,641 crore against Rs 7,259 crore.

"The prices of gold had gone up by 10-15 per cent last year (2003-04). This has contributed to the substantial increase in gold jewellery exports. The other reason for the big jump in gold jewellery exports is increased acceptability of Indian jewellery in markets abroad. We still have a long way to go as our share is only about 10 per cent of the gold jewellery market," Mr Kothari said.

Asked about the impact of appreciating rupee against the US dollar on the gem and jewellery exports, Mr Kothari said that the industry has been affected, but not to a great extent like industries that are less import intensive.

"We are an import intensive industry. A large portion of our raw materials is imported. But some of the exporters are losing money because of the appreciation. We would prefer a steady rupee for the coming months. A fluctuating rupee will not be in our interest," he said Exports of coloured gemstones have, however, registered a decline during 2003-04 at $ 178 million (Rs 815.45 crore) against $ 192 million (Rs 925 crore) during 2002-03.

"The main reason for decline is that some of the exporters have made a forward integration from coloured gemstones into studded jewellery," Mr Kothari said.

To achieve the industry's vision of $16-billion-mark, the council has appointed KPMG to study the strength and potential of the industry in India and correspondingly, outline the roadmap to achieve the same.

More Stories on : Gems & Jewellery | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page