Slowdown to impact gems & jewellery exports

The slowdown in the US economy has had an impact on the export of gems and jewellery to that country, Gems & Jewellery Export Promotion Council (GJEPC) chairman Sanjay Kothari said in Chennai on Friday. The United States is one of the largest markets for Indian jewellery exports (26%). Nearly 50% of jewellery the world over is sold there.

���The US slowdown will affect our exports. We cannot expect exports to that market to increase significantly,��� said Kothari, who was in Chennai for the 35th annual awards function on Saturday. GJEPC will once again use the opportunity to take up with authorities its long standing demand for setting up a training institute for gems and jewellery sector in Chennai on lines of those in Delhi, Mumbai and Jaipur.

The council has been waiting for allotment of land for the institute. During april-august 2008 , India exported gems and jewellery worth Rs 37,297 crore, a 22% rise over the same period last year, which stood at Rs 32,031 crore.

Mr Kothari further said the council aims to develop India as a jewellery hub the way Dubai has been. ���People travel to Dubai to buy gold. Similarly, when they come to India, in addition to buying Kanjeevaram sarees, they should also buy gold jewellery.���

While diamonds are nearing the saturation point (95% of the diamonds in world market is from India), jewellery still has some way to go before it reaches the same level, the council head said. India exported jewellery worth $5 billion to the US in FY08, which is less than 10% of the world jewellery consumption.