|India’s Gem and Jewellery Exports|
INDIA is the largest consumer of gold in the world to be followed by China and Japan. India is emerging as world's largest trading centre of this commodity with a target of US$ 16 billion set for 2010. According to a World Gold Council press statement, in terms of tonnage, overall consumer demand in India in 2005 witnessed 17 percent growth over 2004. In rupee terms, this was equivalent to a 25 percent increase bringing the value of gold demand in India to a second successive annual record. Jewellery demand also experienced a second successive annual record of over 20 percent in rupee terms over 2004. In terms of tonnage, the increase was 14 percent accounting 589 tonne.
According to WGC report, net retail investment was less affected by the upward price movement and set a new annual record in tonnage terms, with a massive 34 percent increase over 2004.
A consumer survey carried out for the WGC at the end of 2005 reveals the underlying strength of Indian gold demand remains robust and is underpinned by a strong economy and favourable demographics in gold’s key target markets. While jewellery demand may have been constrained in the first weeks of 2006, a period of price stability is likely to see a strong level of buying once again.
Placed against target to achieve 65 percent of the international market by 2010, India’s gem and jewellery industry has registered an impressive 34.15 percent growth in exports in rupee terms in just concluded fiscal 2005-06. According to provisional estimates of Gems & Jewellery Export Promotion Council (GJEPC), gem and jewellery exports during 2005-06 stood at US$ 16.66 billion against US$ 15.67 bn in fiscal 2004-05. In rupee terms, the growth was 34.15 percent -- from Rs 70245 crore in 2004-05 to Rs 94236.86 crore in 2005-06.
The Indian Gem and Jewellery industry has witnessed 6.32 growth in exports in fiscal 2005-06 totaling at US$ 16669.11 million (Rs.73304.29 crore) against US$ 15678.14 million (Rs. 70245.95 crore) achieved in the previous fiscal.
The growth in the sector was primarily driven by the Cut & Polished Diamonds (CPD) segment, which witnessed a remarkable increase of 6.07%. The export sales of CPD grew to $11860.49 million during fiscal 2005-06 from $ 11181.56 million in the previous financial year. While total volume of CPD were at 432.72 Lakh carats during 2005-06 as compared to 479.47 lakh carats in the corresponding period in 2004-05.
Jewellery Exports registered a growth of 1.28 percent with exports recorded
at $ 3861.57 million in fiscal 2005-06 as compared to $ 3812.88 million
in financial 2004-05. Colored Gemstones grew by 21.05% to $ 233.32 million
in FY 2005-06 compared to $192.75 million in FY 2004-05.
On the Import front, total imports of Gem and Jewellery grew by 11.79 percent to with imports increasing from $11640.21 million in 2004-05 to $ 13013.11 million in 2005-06. Rough Diamonds were imported to the tune of $ 8708.98 million ; Gold Bar for $ 856.60 million and Cut & Polished Diamonds for $ 3009.02 million.
Source: Gem and
Jewellery Export Promotion Council, India
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