The Hindu Business Line : `Make India a trading hub for gem & jewellery'

Gem & Jewellery council wants India to become a trading hub. Undaunted by high interest rates, withdrawal of GSP benefits by the US and the general economic slowdown in some markets, India's Gem and Jewellery exports grew 22.27 per cent to touch $21 billion (Rs 95,000 crore) in 2007-08.

Because India imports key raw materials - gold and diamonds - the exports are highly import-intensive. Last year, the industry imported $18.50 billion worth of raw materials, according to the Gem & Jewellery Export Promotion Council GJEPC). However, the value addition of $2.5 billion, plus the domestic market for jewellery sustains the livelihood of some 30 lakh people.

According to Mr Sanjay Kothari, Chairman, GJEPC, India has about 10 per cent of world market and has a huge potential to export more. Towards this end, the Council has taken a few steps. One of them is to develop India into a trading hub. Today, Israel and Hong Kong are leading trading centres in the world. India can easily be another major trading centre, Mr Kothari said.

Another step is to build Indian brands - to popularise `Made in India'. Today, leading brands such as Tiffany get their products made in India, but sell under their own brands. For a start, GJEPC wants to popularise `Made in India' brand in West Asia, Mr Kothari said.

FORECASTING TRENDS

The Council has also called for forecasting fashion trends. A `Trend Cell' has been formed for this purpose. Alongside, the Council will work with the National Institute of Design and the National Institute of Fashion Technology for enhancing design capabilities of artisans.

Mr Kothari said that exporters from the South frequently suffer from a want of gold supplies. Exporters are not allowed import directly - they have buy from institutions such MMTC and banks such as SBI, ABN Amro and Nova Scotia. Because the demand from the South is relatively small, these agencies do not operate there.

The GJEPC has represented to the Government to allow exporters to import gold.

IIJS 2008

Meanwhile, the Council holding an international exhibition, India International Jewellery Show (IIJS) 2008 between August 7 and 11, Mumbai.

Over 700 exhibitors with over 1,500 booths on an area 50,000 sq metres will showcase their products, Mr Kothari said. In a similar show last year, business worth Rs 3,000 crore was transacted, he said. Growing exports

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