The Hindu Business Line : Jewellery exports to US decline 4% on global cues

A bit of sheen off
The decline last year comes after exports registered a 40 per cent growth.
Still, India ranks first among countries that export jewellery to the US.

Gargi Shah

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Mumbai, Feb. 26 Indian jewellery exports to the US declined in 2007 after having witnessed robusts growth in the preceding years.

The year 2007 saw a 4.8 per cent decline in exports to the US. This is substantial when seen with the nearly 40 per cent growth in 2006.

On an average, India has, in the last four years (2003-2006) experienced a 30 per cent growth in jewellery shipments to the US.

There has, however, been, no major change in the market share India has in the total imports of jewellery articles by the US.

India, with $2.205 billion accounting for 28.4 per cent share (2007) of total jewellery imports of $7.761 billion into US ranks No. 1 amongst all exporting countries to the US.

Clubbed with the turmoil in the US economy, weakness in the dollar, if the negative growth rate can be taken as an indication, then the industry is in for some tough time.

Since the withdrawal of the General System of Preference (GSP) in July 2007 by the US to goods imported from India, the industry has been deprived even of the little breather.

Reviving GSP

There has been talk of reviving the GSP again, especially in the light of higher sales of Chinese jewellery in the US, increasing trade deficit between US and China, said Mr Rajeev Pandya, President of SEEPZ Gems & Jewellery Manufacturers’ Association.

Now the exporting community in SEEPZ is seeking ways to sell its jewellery in the domestic market. “As, India itself has turned into a major consuming market for jewellery with almost 20 per cent growth per year, we can benefit from selling our products locally,” said Mr Pandya.

“There can be some kind of a limit laid down as to the quantity that we can sell in the local market, if needed,” he added. Of course, the units are willing to pay duty levied on gold when it has to be sold in the domestic market.

However, India alone is no exception to the declining trend in jewellery exports if numbers from the US International Trade Commission on the US import of jewellery articles for consumption are anything to go by. There has been an overall decline of 2.6 per cent in the total imports of jewellery articles for US consumption.

Ten out of the fifteen top exporting countries have witnessed a negative growth rate, interestingly China being an exception to the trend.

More Stories on : Gems & Jewellery | Exports & Imports

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