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The Gem & Jewellery Export Promotion Council (GJEPC) of India announced the annual performance for the Indian gem and jewellery sector for the FY2013-14, declaring a contribution of US$ 34,746.90 million to India's foreign exchange earnings, with a decline of 11 percent as compared to the last year figures. The dip is attributed to the stringent gold import policy, according to the press release by GJEPC.

The financial year 2013-2014 saw an increase of 12.65 percent in export of cut and polished diamonds with figures of US$ 19,635 million. The industry also saw an increase of 11.98 percent in imports of rough diamonds with figures of US$ 16,716 million indicating an increase in cutting, polishing and other manufacturing activities in India. The export of gold jewellery and gold medallions together for the period April 2013-14 was at US$ 11,045.92 million, which shows a decline of 39.50 percent. This was mainly due to the non-availability of gold limiting the extent of trade for many of the Indian players. The average price for exported gold was lower than previous year adding to the woes of the industry that took a hit and closed at a negative of 11 percent. The coloured gemstones export also dropped by 20.10 percent in this year with figures of US$ 519 million. The silver jewellery exports had a significant increase by 58.57 percent with figures of US$ 1,460 million. Key exporting destinations for gems and jewellery in 2013-14 were UAE with 35% of exports valued at US$ 12,195.34 million followed by Hong Kong that stood at 28% with value of US$ 9,790.45 million and USA at 14% with export value of US$ 4,948.92 million.

Commenting on the financial year results of the gems and jewellery sector, Mr. Vipul Shah, Chairman of Gem and Jewellery Export Promotion Council said, “There has been a robust growth in the diamond sector. The market is bullish and the US and Europe markets have also improved. Although, there has been a decline by 11% in the overall performance, there are numerous opportunities for growth and improvement. We are looking at new ventures, new markets such as the Middle East, Russia, China and various initiatives to promote the industry.”

Mr. Shah also said, “The outlook for 2014-15 looks positive in the overall gems and jewellery exports in the current fiscal. The MoU being signed with Russian diamond mining firm ALROSA to share trade and statistical data between the two countries will help in strengthening trade relations between the two countries. Some of our other initiatives for the year 2014-15 include the India-China Gemstones Buyer-Seller Meet in Jaipur, India-USA Buyer-Seller Meet to be hosted for the first time in Chicago, the 2nd edition of the global Gem & Jewellery Fair in Dubai this November and many more.”

On an optimistic note, Vice Chairman, Mr. Pankaj Parekh said, “The prospects for 2014-15 looks bright for jewellery, especially silver jewellery, as the 80-20 scheme might get diluted; import duty is expected to be rationalized as the RBI has already allowed four more banks to operate in imported gold trading. There is also a huge demand in the international market, so we expect a boom in the silver jewellery exports with at least 10% more exports compared to 2013-14.”

The performance of India’s gem and jewellery industry for the FY 2013/14 is as follows:

Gems and jewellery

The overall imports of gems & jewellery show US$ 3,207.55 million (Rs. 19,569.28 crores) in the month of March 2014, a decline of 19.10% (-9.27% in Rs. terms) as compared to US$ 3,965.05 million (Rs. 21,569.82 crores) for the same period of the previous year. Overall exports of gems and jewellery at US$ 3,142.02 million (Rs. 19,169.50 crores) in the month of March 2014 show a decline of 28.12% (-19.39% in Rs. terms) as compared to US$ 4,371.32 million (Rs. 23,780.06 crores) for the same period of the previous year. For fiscal April 2013 – March 2014, the overall exports of gems and jewellery at US$ 34,746.90 million (Rs. 210,224.00 crores) is showing a decline of 11.00% (-1.16% in Rs. terms) as compared to US$ 39,042.18 million (Rs. 212,685.50 crores) for the same period of the previous year.

Rough diamonds

Imports of rough diamonds at US$ 16,715.76 million (Rs. 100,374.43 crores) in April 2013 – March 2014 have shown a growth of 11.98% (+ 23.933% in Rs. terms) compared with the imports at US$ 14,926.96 million (Rs. 80,992.52 crores) for April 12 – March 13. In volume terms, import of rough diamonds at 1,619.11 lakh carats during April 2013 – March 2014 has shown growth of 9.11% compared with the imports at 1,483.89 lakhs carats during April 12 – March 13.

Cut and polished diamonds:

For March 2014, the overall export of cut and polished diamonds at US$ 1,571.44 million (Rs. 9,587.36 crores) in the month of March 2014 is showing a decline of 33.11% (-24.99% in Rs. terms) as compared to US$ 2,349.42 million (Rs. 12,780.87 crores) for the same period of the previous year.

Imports of cut and polished diamonds at US$ 789.11 million (Rs. 4,814.33 crores) in the month of March 2014 showed a decline of 30.06% (-21.56% in Rs. terms) as compared to US$ 1,128.29 million (Rs. 6,137.87 crores) for the same period of the previous year

For the fiscal April ‘13 – March ’14, the overall export of cut and polished diamonds at US$ 19,635.04 million (Rs. 118,870 crores) is showing a growth of 12.65% (25.47% in Rs. terms) as compared to US$ 17,430.20 million (Rs. 94,739.16 crores) for the same period of the previous year. The overall imports of cut and polished diamonds at US$ 6,540.90 million (Rs. 39,586.76 crores) is showing a growth of 17.65% (31.08% in Rs. terms) as compared to US$ 5,559.56 million (Rs. 30,200.89 crores) for the same period of the previous year.

Gold jewellery and gold medallions

Provisional export of gold jewellery and gold medallions together for the period of April ‘13 – March ‘14 at US$ 11,045.92 million (Rs. 66,919.65 crores) shows a decline of 39.50% (-32.88% in Rs. terms) over the comparative figure of US$ 18,257.40 million (Rs. 99,697.87 crores ) for April ‘12 – March ‘13.

Silver jewellery

Provisional export of silver jewellery for the period of April ‘13 – March ‘14 at US$ 1,459.87 million (Rs. 8,798.89 crores) shows growth of 58.57% (+ 75.40% in Rs. terms) over the comparative figure of US$ 920.62 million (Rs. 5,016.46 crores) for April ‘12 – March ‘13.

Coloured gemstones

Provisional export of coloured gemstones for the period of April 2013 – March 2014 at US$ 519.47 million (in Rs. 3,136.90 crores) shows decline of 20.10% (-11.08% in Rs. term) over the comparative figure of US$ 650.17 million (Rs. 3,527.81 crores) for April ‘12 – March ‘13.

Initiatives

The Gem & Jewellery Export Promotion Council continued with its various initiatives aimed at promoting international as well as domestic trade in India.  Some of the initiatives included India International Jewellery Week (IIJW), India International Jewellery Show (IIJS), India-USA Buyer Seller meet, Basel World 2014, JCK Las Vegas Show 2014, Singapore International Jewellery Expo, Bangkok Gems and Jewellery Fair 2014, budget recommendations to the Government of India and regular industry reports.

GJEPC Exploring New Geographies

GJEPC and state-owned Russian diamond mining company ALROSA signed a MoU to  agree to exchange information pertaining to the development of the co-operation between Indian and Russian diamond sectors, including overviews of the diamond market situation, Indian and Russian trade figures, information on Indian diamond market research. The MoU, inked by GJEPC Chairman Vipul Shah and ALROSA President Fyodor Andreev, is another evidence of warming trade relations between the two countries.

The India-China Gemstones Buyer-Seller Meet organized recently to bring together key trade representatives from the two countries was also effective in not only presenting new prospects for the Indian trade but also in providing the Chinese trade with deeper understanding of the Indian market, leading to establishing stronger business ties.

The Global Gem and Jewellery Fair offered an exciting opportunity to explore new markets in the Middle East - Dubai and the Gulf region to the Indian participants who showcased new collections revolving around the region-specific aesthetics. With over 130 exhibitors participating from India and the GCC, the GGJF was an ideal platform for international buyers and sellers and after the astounding success received for the first edition in 2014, GJEPC has been invited to host another edition within six months itself in Dubai.

Strengthening Existing Trade Ties  

The India-USA Buyer-Seller Meet is set to be organized in Chicago, USA from the 5th to the 8th of September 2014. This will bring together key trade representatives and is also expected to be effective in not only presenting new prospects for the Indian trade but also in providing them with deeper understanding of the Indian market, leading to establishing stronger business ties. GJEPC aims to strengthen the existing trade ties with the USA and provide a platform to develop new customers for the Indian gems and jewellery industry.

Aruna Gaitonde, Rough&Polished, India