Strap: To target Russia, Brazil, the UK, Vietnam for diamond exports
Amid global uncertainties and falling imports, the Gem and Jewellery Export Promotion Council is looking to tap new markets, while making further inroads in the US as the Government there levies a more punitive duty on jewellery imports from China.
India’s exports of gems and jewellery are largely concentrated in the US, the UAE and Hong Kong, which account for about 80 per cent of the total exports.
Under a new strategy chalked out for the cut and polished diamond industry, the GJEPC will focus on Russia, Brazil, the UK, Vietnam, Singapore, France, Italy and Germany, and for gold jewellery on Qatar, Australia and Thailand.
Besides, it is exploring the UAE, the UK, Germany and Singapore for coloured gem stones and Singapore, Malaysia, Thailand and South Africa for export of imitation jewellery.
Impact of US-China trade war
Colin Shah, Vice-Chairman, GJEPC, said the trade war between the US and China has challenged the concept of globalisation and has had an impact on world economic growth and trade, which has affected the overall demand for gem and jewellery products in different countries.
Recently, the US imposed a revised higher tariff rate on Chinese imports, which is relatively higher than that charged on imports of gems and jewellery products from India.
China accounts for 13 per cent of US gold jewellery imports, 20 per cent of silver and 73 per cent of imitation jewellery shipments.
The trade war between the two major countries has thrown open a big market for India, which could make the most of this opportunity with a specific strategy and policy support, he said.
Export numbers
Exports of gems and jewellery declined six per cent to $25 billion ($26.82 billion) between April and November; in rupee terms it was down 5 per cent at Rs 1,76,540 crore (Rs 1,85,544 crore).
Exports of cut and polished diamonds plunged 19 per cent to $13 billion ($16.55 billion); in rupee terms it dropped 18 per cent to Rs 94,274 crore (Rs 115,259 crore).
However, gold jewellery exports increased 5 per cent to $8.48 billion ($8.05 billion); in rupee terms it was up at Rs 59,689 crore (Rs 55,989 crore).