With generalised system of preferences in US coming to an end in June 30 and the American market showing little scope for growth, minister of state for industry and commerce Jairam Ramesh said the gems and jewellery producers should intensify their efforts to tap the developing economies of the two Asian giants, India and China.

To reduce dependence on the US market, Ramesh urged the gem and jewellery sector to introduce innovative designs in newly-explored markets such as Russia, Africa and Japan.

Talking to mediapersons in Mumbai, he said the GDP of India and China is growing at 10 per cent and 8.5 per cent respectively and indications are that the current growth rate would sustain for the next few years.

While the gem and jewellery sector is estimated to grow at 16 per cent in China, the Indian and US markets are estimated to grow at 9 per cent and 3 per cent respectively.

As the US market has become saturated, it offers the least growth potential. However, exporters are still keen on the country because of higher realisations under the generalised system of preferences. But the $4-billion jewellery exports to the US are under threat as the GSP will expire on June 30.

The minister denied any possibility of a squeeze in the margin of jewellery sector due to rupee's appreciation.