Gem exporters expect to cross $10 billion this fiscal

Indian gems and jewellery exports are set to cross the $10 billion mark in this fiscal as the country's share in value-added gold ornaments and cutting and polishing of diamond is expected to go up.

India had exported $9.1 billion worth of gems and jewellery in 2002-03, representing a growth of 23 per cent over exports in the preceding year.

Although the target set by the Union ministry of commerce was for 10 per cent growth, exporters claimed actual shipments were likely to go much beyond that.

"We are very confident of surpassing this target. The growth will be driven by increasing share of value added items in jewellery and diamond cutting and polishing," Pankaj Parekh, a top official of Gems and Jewellery Export Promotion Council, the apex body of exporters, said.

India accounted for over 90 per cent of the global market share in cutting and polishing of diamond (volume-wise) in the last fiscal.

However, its share in value terms was just over 60 per cent. Parekh pointed out that India lost out it high-value categories like the cutting and polishing of bigger diamonds.

"Efforts are being made to grab this market. We must go up the value chain since in terms of volume India is comfortably placed. To increase export value, we have to look for value added items," an expert said.

A similar situation prevailed in the market for gold jewellery, where Indian exporters did not have a sizable presence in the fashion-conscious European market.

"There the issue was with the make. Our `karigars' are efficient in handcrafted jewellery made of 22 or 24 carat gold which is soft and malleable. In contrast, demands in those regions are for 14 carat gold jewellery which is stronger," Parekh, who is also convenor of the gold jewellery panel of GJEPC, said.

Industry observers stressed the need for mechanisation of the gold jewellery making process. Moreover, exporters as well as the karigars would have to be exposed to changing fashions in the West and the need to deliver on evolving fashion trends quickly, they added.

Exporters from all over India who met in the city on Sunday welcomed the initiatives taken by the state government to boost exports.

"A step in the right direction is being taken with Manikanchan, the first greenfield special economic zone dedicated to a particular industry, which is coming up in Kolkata," said an exporter.

The state government was also working on a policy to help exporters. Exports from the region were small at present compared to the total exports from India.

The state was planning to help exporters raise their shipments levels to around Rs 1,000 crore (Rs 10 billion) in a few years.

Emphasis will be given on greater mechanisation of the process of manufacturing gold jewellery at the SEZ.