Thai gems all set to glitter

Thailand and India are working towards improving bilateral trade in the gems and jewellery segment.

Thailand, known for its coloured gemstones, is keen to make its presence felt in India, where the market is responding positively to gemstone-studded jewellery.

Industry sources indicated that Indian and Thai industry bodies were exploring various opportunities and might form a separate entity to promote the trade.

Similarly, the Indian jewellery industry is optimistic that the ongoing India-Thailand FTA talks would consider gems and jewellery when they extend the early harvest list for the treaty.

In value terms, coloured gemstones currently form a small pie of the trade. India and Thailand are optimistic about the growth due to increasing consumer demand.

Vichai Assarasakorn, chairman, committee of gems and jewellery business, Thailand, said, "In India, there is good demand for gemstones, particularly ruby and sapphire. Thailand plans to enter the local Indian market in a big way and target the luxury segment."

Conventionally, India is popular for its penchant for gold, while the demand for diamonds is growing at a rapid pace. However, the coloured gemstones are assuming importance in the market as consumers with deep pockets become increasingly fashion-conscious.

"Earlier coloured gemstone purchase was largely associated with religious connotations. With international travel and exposure to global fashion trends, the Indian market is tilting towards stone-studded jewellery. The customers are demanding diamond and gold jewellery studded with gemstones to keep pace with the changing fashion trends," said a retailer.

As a part of its plan to enter India, Thailand would be showcasing its gemstone-studded jewellery at the upcoming India International Jewellery Show to be held in Mumbai.

The Thai delegation would also undertake roadshows in Mumbai, Delhi, Jaipur and Chennai. Assarasakorn mentioned that unlike gold and diamond, the lack of common promotion is hampering the growth of coloured gemstones trade.

During April 2006-March 2007, India's total gems and jewellery exports to Thailand stood at $348.63 million, with gemstone comprising $37.71 million.

"Japan and Europe are one of the biggest markets for Thailand. Currently, India constitutes about 10 per cent of the Thai trade. But if the market catches up, India and China together might put strain on gemstone supply," said Assarasakorn.