Gems, jewellery exports likely to cross $30 billion

India’s gems and jewellery exports are likely to cross $30-billion for the current financial year because of healthy demand from the western markets like the US and Europe.

The country’s gems and jewellery exports are expected to rise 17.8 per cent to $33 billion in 2010-11, Gems and Jewellery Export Promotion Council (GJEPC) Chairman Rajiv Jain said.

The council had set a target of $30-billion in 2010-11 against $28 billion in the last financial year.

“We were left with a large number of stocks in the last financial year, as many buyers delayed import plans and some even cancelled the deals due to the economic crisis. As the situation improved this financial year, we could use these stocks for exports and cater to the rising demand easily,” he added. The US and Europe contribute 60 per cent to India’s gems and jewellery exports.

During April-December 2010-11, the country’s exports increased 41 per cent to $27.5-bn compared to the same period last financial year.

The exporters are expecting a robust global demand in the next financial year, driving exports up 12 per cent.

India’s gems and jewellery exports came under pressure when the global credit crunch two years ago squeezed demand in the western markets.

To reduce dependence on the West, Indian exporters are also exploring new markets like South America and East Asia.