Indian Gem and Jewellery sector performance up 154% in 2012-13

At the close of fiscal year 2012-13, the GJEPC noted that the annual performance for the Indian Gem and Jewellery sector was up 154 percent on y-o-y basis, contributing US$ 2,132.82 million to India’s coffers in terms of foreign exchange earnings.

Rough diamond imports were up by 12.65 percent indicating an increase in cutting, polishing and other manufacturing activities in India. The manufacturing activities rose, indicated by the 33 percent growth in gold jewellery exports. Import of cut and polished diamonds dropped 61.45 percent, a significant amount, which indicated a huge cut in India’s foreign exchange spending, thereby reducing the country’s current account deficit (CAD). Total gem and jewellery exports for the year 2012-13 was US $ 39.033 billion.

Mr. Vipul Shah, Chairman of Gem & Jewellery Export Promotion Council said, “The results have been quite favorable this year. The industry has strived hard towards reducing India’s current account deficit by controlling imports and increasing exports. The industry’s contribution towards India’s exchequer has also seen a staggering rise of 154 percent. He further added that “At a time when the industry was going through a challenging period, governmental regulations related to the reintroduction of bonded warehouse facility for diamond exporters and revision in duty drawback rate facility for Gold jewellery exporters has helped strengthen the industry further. The Council also applauds the government’s efforts for accepting recommendations of Task Group report to make India an International Trading hub for rough diamonds”

Commenting on the outlook for 2013-14 Mr. Shah added, that it looked positive “with an estimated growth of 12 to 15 percent in the overall gems and jewellery exports in the current fiscal. The US and Japanese jewellery markets will bounce back with an estimated 5 percent growth while China will remain stable at 10 percent growth.” Also proposed for 2013-14 is regulatory measures such as introduction of consignment imports of diamonds, start of rough diamonds tenders and auctions in India, formation of committee for looking into lending norms for banks to the diamond and jewellery sector as well as commissioning of a study on ECIB covers by ECGC to banks.

The GJEPC efforts to promote international as well as domestic trade in India continued with initiatives like the India International Jewellery Week (IIJW), India International Jewellery Show (IIJS), India-China Buyer Seller meet, budget recommendations to the Government of India, seminar on synthetic diamonds and regular industry reports. Last month the Council also organized its first business to consumer event, India Gems & Jewellery Fair (IGJF) in New Delhi in association with ITPO and hosted the India International Jewellery Week (IIJW) in New Delhi. To create better interaction between the trade and banks, the GJEPC organized Banking Summit in Mumbai in April, in which senior officials from RBI and other leading banks along with Credit Institutions and trade members, participated.