32nd IIJS unfolds with much hope for a mood lift

The first day of the 32nd India International Jewellery Show (IIJS) opened today with leading leaders and professionals being part of its inauguration. Chief Guest - Mrs. Rita A. Teaotia, Commerce Secretary, Minister of Commerce & Industry, Government of India, the Guest of Honour - Mr. Paul Rowley, Executive Vice President, De Beers, Global Sightholder Sales along with Vipul Shah, GJEPC inaugurated the show. The event by Gem & Jewellery Export Promotion Council (GJEPC) is being held from August 6-10 at the Bombay Exhibition Center in Mumbai.

The show is pegged as the largest show in Asia and allows the G&J industry an excellent business opportunity to explore the various aspects of the Indian gem and industry today - particularly the growth in its business and economic development. Expectations are afloat that the show may just kick in some positive mood and lift the gloomy sentiments around the industry this year.

Mrs. Rita A. Teaotia shared some insights about the Indian gem and jewellery industry and its demands from the Indian Government. She spoke of the government having taken initiatives to support to the industry and partner with it, citing implementation of the Kimberly Process, quick measures to address the industry request for the SNZ with its execution already underway. She shared the government hopes to announce reasonable and rationale taxation norms for the industry in due course of time and also cited the need for sector to work with financial institutions to build confidence and conduct genuine business to protect the industry’s image. The 8 digit code and interest subvention demands are being looked into and keeping in mind the degree of urgency and neediness of various sectors, the interest subvention scheme will be looked into for the gem and jewellery industry, she noted.

Guest of Honour - Mr. Paul Rowley, Executive Vice President, De Beers, Global Sightholder Sales, in his talk said that consumer demand for diamond jewellery at the end of 2014 was below expectations. Also, in the course of 2015 so far, growth continues to be softer than expected and the strength of the US dollar has impacted demand in non-US dollar denominated markets. Stock levels at both the retail and cutting center level remain higher than desired, so far in the course of 2015, leading to lower level of demand for polished diamonds with the apparent limited desire to restock. Polished prices have therefore softened. He mentioned that in light of the difficult trading environment, De Beers is adopting some short term changes like - trimming its 2015 production guidance from 32-34 million carats to 29-31 million carats in response to reduced Sightholder demand; repeatedly providing increased deferral flexibility in its Global Sightholder Sales. De Beers, over the first half of 2015 has continually adjusted its rough process based on prevailing market conditions whilst taking a long term, sustainable view on pricing. Purchase of diamond jewellery at the retail level is estimated, at worst to be flat on the level of $81 billion seen in 2014. Also, De Beers estimates there is enough demand at the consumer level to ensure there would be better times after the challenges around inventory imbalances that have dogged the midstream so far this year have resolved themselves. India provides the heartbeat of the modern diamond world and the ability to maintain consumer confidence, the ability to innovate with technology and the ability to grow diamond value will play a central role in reviving the fortunes of the diamond industry.

Mr. Vipul Shah, GJEPC, commented, “The Indian G&J has seen a slow growth in last few months this year, especially in terms of exports. However, with the Council’s efforts such as IIJS, IIJW and BSMs, we are optimistic that the business sentiments will gradually pick up towards the festive season and the outlook will be positive for the international and domestic retailers. We do not anticipate any major growth curves in next few months and we can safely predict a stable outlook for the Indian G&J industry. We believe in a long term perspective and IIJS will provide the industry with the much-needed vigor and positivity to gear up for better times ahead.”

By largely maintaining same space for old exhibitors; GJEPC has achieved 25 percent growth in exhibitors and 11 percent growth in booths. The highlights of this edition of IIJS include new sections like Laboratories & Education, Synthetics & Simulants; re-location of sections including International Loose Stones, Allied/Laboratories & Education; option for exhibitor4s to surrender back partial space at existing location and additional connectivity and entry points inside halls. The extended show hours, road shows to mobilize national and international trade visitors the makeover of the Elite Club are some of the new experiences at the show.