The Gem and Jewellery Export Promotion Council (GJEPC) announced the trade and industry performance for the financial year 2011-2012 at a press conference in Mumbai.
The Indian gem and jewellery industry has witnessed a marginal decline of 0.36% in FY 2011-2012 owing to the decrease in trading exports of diamonds.
The total gem & jewellery industry exports were recorded at US$42839 million (INR 204823 crores) in FY 2011-12 as compared to US$ 42995 million (INR 195735 crores) in April 2010 – March 2011. Though in dollar terms there is a marginal drop of .36%, the exports mark an increase of 4.6% in rupee value. The gem & jewellery sector accounted for 14% of India’s total merchandise exports in FY 2011-2012.
The growth in the sector was primarily driven by Gold Jewellery which registered an increase of 30% in FY '12. The exports grew from US$ 12695 million (INR 57747.67 crores) in 2010-2011 to US$ 16517 million (INR 79430.26 crores) in 2011-2012.
Cut and Polished Diamonds (CPD) witnessed a decline of 17.3% with exports decreasing from US$ 28217 million in 2010-2011 to US$ 23329 million in 2011-2012.
Coloured gemstone exports witnessed an increase of 9.10% in dollar terms with sector recording growth from US$ 314.20 million in 2010-2011 to US$ 342.80 million in 2011-2012.
UAE was the largest exporting destination with 44% of Exports to the market, followed by Hong Kong with 25% and USA with 12% of exports.
Mr. Rajiv Jain, Chairman, GJEPC speaking at the Conference said,” We are happy that keeping with the govt objective of reducing the trade deficit, imports of cut and polished diamonds have dipped post the introduction of 2% import duty on cut & polished diamonds in mid-January 2012. However an increase in import figures of rough diamonds indicates stable growth of trade at the manufacturing level and growth in exports."
There has been a substantial decline in import of polished diamonds during January to March 2012 more than 70% in a month post introduction of 2% duty on C&PD. In the annual figure the decline is 30% in 2011-12 in comparison to previous year. It is expected that the total import of polished diamonds at US$14.3 bn in 2011-12 may eventually come down significantly in 2012-13.
“We can note the trend in the 1st quarter of April-June 2012. This trend is positive and will help achieve higher value addition and maintain trade balance in months to come", he added.
There are series of initiatives planned by GJEPC that will provide an impetus to trade and catapult the industry to newer heights.
Expanding its role and taking on the onus of improving skill sets for the Industry, GJEPC has established gem & jewellery sector specific council of India to achieve the same.
The Council this year will participate in 12 international exhibitions and will organize INDIA SHOW at the forthcoming JCK Las Vegas in June. This title was conferred by the MOC & I to Indian participation at Basel Fair last year. USA being the prime destination for Gems & Jewellery, India Show at JCK Las Vegas will help establish India and Indian Gem & Jewellery Industry remarkably.
In its attempt to explore and establish new markets, Council recently held Indo-Russia Buyer Seller Meet in Surat. Russia and China are the key focus markets for the year in addition to the existing USA, Europe and UAE.
GJEPC will host IIJS Mumbai 2012 from the 23rd to 27th August 2012. This property over the years has established itself as one of the largest Jewellery show in Asia and is undeniably a breeding ground to foster relations with other markets across the world. Rightly declared as the ‘India Show' by the Government of India, IIJS 2012 promises business like never before.
To showcase India’s Prowess in Design and Manufacturing to the End Buyers both International and domestic through B2C platforms, GJEPC launched the India International Jewellery Week in 2010. Starting 19th August, 2012, Mumbai will host the 3rd edition of IIJW.
The initiatives such as two "India Shows" in the form of IIJS in Mumbai and at JCK Las Vegas will only help achieve stupendous growth in exports in succeeding months. Council aims to achieve healthy trade balance in exports and yet establish India as the most sought after destination in Gems & Jewellery globally.