Gems exporters look beyond US

The Gems and Jewellery Export Council of India (GJEPC) is looking at reviving the Japanese market and strengthening trade ties with the Commonwealth of Independent States (CIS) nations to lower its dependence on the US market.

Sanjay Kothari, chairman, said, "The export council is exploring new markets for the gem and jewellery industry as over dependence on the US is not justified. We are trying to enter Japan through export of finished jewellery and other markets such as the CIS nations."

In 1980s, India use to mainly export loose diamonds to Japan, which was a big market for India after US. However the Indo-Japan jewellery trade declined due to the recession in the Japanese market and the Japanese companies, which require fine finished goods, were apparently not satisfied with India's manufacturing capabilities.

Elaborating on reviving the Japanese market, Kothari said, "The year 2007 has been declared as the Indo-Japan Friendship year, and gems and jewellery would be one of the sector that will be promoted in Japan.

"Last year a Japanese delegation visited India and expressed confidence in the Indian jewellery manufacturing units. Approximately 8-10 jewellery companies are expected make a trip to Japan and display Indian jewellery at 20 centres across Japan through local exhibitions and shows."

Recently a gems and jewellery council delegation visited the CIS countries, which include Armenia, Georgia, Azerbaijan, Ukraine and Kazakhsthan, to explore potential opportunities in these markets for sourcing raw materials, supplying cut and polished diamonds and gold jewellery.

About trade ties with CIS nations Kothari said, "Earlier we had not explored the potential of direct jewellery sale to these countries. Mostly CIS countries import goods from Turkey and Italy.

The CIS and Russia together constitute a $6 billion market and it will be our objective to achieve 10 per cent of the market within next 2 years."

In 2005-06, gems and jewellery exports reached $17 billion. The US constitutes 38 per cent of the country's total gems and jeweller exports, while India's share in gem and jewellery imports from the US is 30 per cent.