FICCI predicts Indian gem and jewellery exports to double in 7 years

The Federation of Indian Chamber of Commerce and Industry (FICCI), India’s trade body has projected the country’s gems and jewellery export to grow double in the next seven years and rise to $37bn worth industry by 2015.

These predictions are made above the fact that India is still the leading cutting and polishing centre for the world’s diamonds. The industry is expecting to see an overhaul in many aspects – infrastructure with a diamond bourse soon to be set up, supportive government policies, investments in new markets, an overall management change from the traditional family-owned business to a more professionally-managed unit, design innovation, use of more advanced technologies. The banking sector has also shown its support to the industry, and around 50 banks are assuring a funding worth $3bn as credit to the Indian diamond industry. Infrastructure support like a diamond bourse is anticipated to be set up soon.

Reports add, the industry may see a 14 percent rise in net sales and 50 percent in operating profit during April-June 2008, from the corresponding quarter of 2007. At present, India employs around 1mn processors treating over 57 percent of the world’s rough diamonds by value. A strong base as this and some changes if implemented, could improve India’s potential as an emerging market, in the near future.