A dazzling growth in cut-polished diamonds
A growth in plain gold shied against the growth of non gold jewellery!

Recently the GJEPC announced their export performance for the year 2007-08. During the year Indian GJ export crossed over the given target of US$ 18.5bn and reached to US$ 20889.21mn that grew over 22.27% than the previous year export of US$17.1bn. In the INR term, total GJ export for the year 2007-08 reached to 84,058.19 crores that were in the year 2006-07 of Rs.77, 100.12crores. Overall the GJEPC said, “This performance is all the more commendable considering the fact that the rupee showed a steady gain over the US dollar for most of the year.”

Cut-n-Polished:

The cut-n-polished diamonds accounted about 68% of the GJ export basket that worth US$ 14.2bn in the year ended on March 31, 2008 that contributed 30.19% share to the average growth chart of 22.27%. In the previous year 2006-07, that was worth US$10.9bn. In the term of rupee the cut-n-polished diamonds grew from INR 49,156.28crores of previous year to INR 57.061.45crores in the 2007-08.
Here Sanjay Kothari said that it’s a result of growing trading movement, “The industry has maintained a study rate of growth this year too but this growth is a result of increase in trade activities as actual manufacturing has shown a decline”

Gold Jewellery:

According to the GJEPC, the export of gold jewellery that grew over the precious year from US$5202.48mn to US$5622.41mn that is a growth of 8.07% in USD term. On the other hand colour gemstones & others reached to US$276.42mn in 2007-08 where as that export stood at US$264.4mn in the previous year that is a growth of about 12.15% in the year ended FY and non-gold jewellery grew 36.35% over the previous year in the year 2007-08.

Now, if I look at the export chart of gold jewellery that grew at the average of 15% during the years1998-99 to 2002-03. Equally, during the years 2003-04 & 2007-08 the growth rate could be obtained at the average of little more than 20%. Overall the development of gold jewellery that has been gained or stainable growth of gold jewellery export is of just 2%! Means, during last five year’s- 2003-04 & 2007-08 real average growth could be seen to a 2%over its previous half of the decade i.e. during 1998-99 to 2002-03!
Here just a question is why? The sector is not growing indeed? Where it sinks while we compete the global market (This is without the consideration at all the current issues & paid efforts, because the sum total of growth is just 2%) This could be discussed at some fine time! Not now!

Average growth of the last 5 years is around 10% and this year color gem stones grew 11% with the US$276mn over 2006-07 from the export of US$247mn. But, the silver lining is non-gold jewellery that grew over 36% than the previous year! Here point is to focus little more on fashion-n-luxury manufacturing and on non-gold fashion jewellery too!

Bottom Line: Defacto the GJEPC is showing better performance yet, jewellery sector is looking like an others baby. All the recent developments are notable, further initiatives that shows a roadmap, India, to be a global Gem-n-Jewellery-hub!

Sanjay Kothari:
“What is more remarkable about this performance is that they have been achieved in face of appreciating rupee, high interest rates, withdrawal of GSP benefits and general economic slowdown in out major markets. The increases in the exports of diamonds that are cut and polished in the country are a testimony to the talent of our artisans in this industry.”

“With the assistance of Government of India we at GJEPC are committed to take this industry forward. Over the year GOI has keenly considered the needs of Indian Gem & Jewellery Industry and has made favourable amendments in policies to support the continuous growth. For instance last year Government of India reduced import duty on Cut & polished diamond to 0% that has helped India to be at par with other international manufacturing centers. This will enable India to transform from largest manufacturing centre to the global trading hub.”