Exports up, but problems persist
IN FOCUS / GEMS & JEWELLERY
| Bouyed by these developments, the $9 billion gem and jewellery industry in the country appeared to be well placed to achieve its export target of $16 billion by 2007. |
| If Indian exporters can achieve this target, it would put most competitors on the mat. |
| The gems and jewellery industry has grown from a $28million in late 1980's to $9.1 billion in 2002-03. India emerged as the fastest growing jewellery exporter in the world. Average growth rate has been about 40 per cent incremental basis per year in last decade of the 20th century. |
| Jewellery exports in the last fiscal, excluding gems, was only $1.51 billion, up from $304 million in early 1990's. The world jewellery market was worth about $ 56 billion. |
| Globally, India continued to be far behind China/ Hong Kong in the diamond jewellery market. Italy dominated the plain jewellery segment and Thailand was the largest gemstone jewellery exporter. There is ample scope for India to tap the huge potential. |
| India's combined gems and jewellery exports increased to Rs 22,247.04 crore during April-October 2003, a rise of 13.61 per cent over Rs 20,471.07 crore of the previous year, according to the provisional figures of Gem and Jewellery Export Promotion Council (GJEPC). |
| Sanjay Kothari, chairman of GJEPC, said, "Inspite of discouraging factors such as fall in exports to 8 per cent in April due to SARS and Iraq war and fall of the rupee against the dollar, gem and jewellery exports rallied by 13.61 per cent in dollar terms and 8.68 per cent in rupee terms". |
| This was possible because several international exhibitions were organised in the last six months. These shows generated interest in this sector and the Indian International Jewellery Show 2003 and Jewellery Arabia 2003 in Bahrain in particular helped boost exports. |
| The challenge before India was to rediscover itself as a major trading centre from being just a manufacturing base of cut and polished diamonds. Some companies in the country have started integrating forward by manufacturing studded jewellery. |
| Several foreign stores and brands have started outsourcing jewellery from India but the business was still small. Indian jewellers offered a cost-competitive package but problems regarding timely delivery and after sales service were holding back exports. |
| Responding to a US retailers survey recently, retail chain managers said they were interested in working with Indian jewellery suppliers as the satisfaction level about quality of merchandise had improved. Buying from Indian vendors offered value for money. |
| However, factors like jewellery styling, timing of delivery and after sales service continued to be prevent them from raising their purchases from India. |
| On the quality front, the establishment of International Gemmological Institute (IGI) in 1999 had led to decline in rejections but quality issues persisted. Quality control measures had to be implemented to gain market share in the US jewellery market. |
| On product development too, exporters were required to invest in styling and designing departments. Creativity was in short supply. US retailers wanted designers to be present at purchase meetings as well as greater access to US markets to understand fashion trends. |