Jewellery exports from India are likely to hit a four-year high, crossing $40 billion, in the current financial year on robust American demand.
Also expected is a rise in demand for gold ornaments in West Asia and Turkey. The Gems and Jewellery Export Promotion Council (GJEPC) has fixed a target of $43 billion this year.
Says Vipul Shah, its chairman: "We expecting high single-digit growth in the overall segment this year. Diamond jewellery demand is robust across all destinations, led by the US. Gold jewellery demand has also seen phenomenal growth in 2014-15. The trend looks likely to continue, on rising order flows. Thus, we can easily surpass $40 billion this year."
"Exports of studded, gold-plated colour stones and silver ornaments are likely to post a very good growth," said Shah.
Gems and jewellery are 13 per cent of Indian merchandise export. India processes 11 of every 13 diamonds in the world.
"We expect diamond and gold jewellery to record seven to nine per cent growth this year," said Shreyas Doshi, chairman, Shrenuj & Co, one of the country's largest jewellery exporters.
America constitutes around 42 per cent of world jewellery consumption and around 40 per cent of India's overall gem and jewellery export goes there.
"China had taken up some of India's market shares in the past few years. But, the increasing cost of labour has made exports from China more expensive than India," said Mehul Choksi, managing director of Gitanjali Gems, which runs a little over 100 retail shops there.
Indian jewellers have taken several initiatives to promote gold and diamond ornaments. Apart from frequent bilateral meets, they've also successfully made a dent in the Latin American market, set to fetch good volume this year. A delegation led by GJEPC Vice-Chairman Deepak Parekh is currently on tour to Panama and is later to go to Mexico and Brazil, to explore opportunities in these markets.