The Financial Express

Gems and jewellery sector may grow at 20-25 per cent 

April 13, 2006

Mumbai: India's export of gems and jewellery in 2005-06 rose to US$ 16.67 billion, a growth of more than 6 per cent.

The gems and jewellery sector is likely grow at 20-25% in 2006-07 (Apr-Mar), aided by new opportunities in the diamond segment, Bakul R. Mehta, chairman of GJEPC, said. The country has the potential to become the next global trading hub of gems and jewellery, he added.

The country’s gems and jewellery exports rose 6.32% in the financial year 2005-06 (Apr-Mar), aided by a rise in the cut and polished diamond segment, which grew 6.07%. “Growth could be exponential with more trade opportunities in the polished diamond segment,” Mr Mehta said.

The gems and jewellery sector consists of cut and polished diamond, gold jewellery, coloured gemstones and silver jewellery sectors. “The sector has huge potential. What we want to do is import polished diamonds, process them here (India) and re-export,” Mr. Mehta said. “It’s a huge business and we want it to move to India,” he said. Currently, diamond-processing activity is concentrated in West Asia and Europe. Indian traders are mainly involved in cutting raw diamonds.

In the foreign trade policy for 2004-09 (April-March), commerce minister Kamal Nath had unveiled a string of measures, to develop the sector. The policy removed various hurdles to exports, Mr. Mehta said.

Mr. Mehta also welcomed the finance minister’s decision to set up an expert panel to look into taxation practices. “This will give a lot of thrust to the sector and enable India to become the next trading hub,” Mr. Mehta said.

**********