INDIAN GOLD JEWELLERY INDUSTRY:

TREMENDOUS POTENTIAL FOR EXPORTS

 

EXPORT OF GOLD JEWELLERY FROM INDIA

The exports of gold jewellery increased to Rs.1888 crore, representing 10.48% of India's gems and jewellery exports in 1995-96.The exports were Rs. 89 crore accounting for about 4% of the country's gems and jewellery exports in 1986-87. There has been further growth in gold jewellery exports to Rs. 2636 crore in 1996-97, Rs. 3097 crore in 1997-98 and to Rs. 3445 crore in 1998-99. This represented an almost doubling of gold jewellery exports during three years.

 

Indian hand-made jewellery has a large ethnic demand in various countries with sizeable Indian emigrant population such as the Middle-East, South-East Asian countries, USA, Canada and so on. With imported or domestically processed studding (diamonds and precious/semi-precious stones) and findings (jewellery components), Indian machine-made jewellery industry will also generate demand from non-ethnic jewellery markets abroad.

 

The unique advantage of India for the manufacture of diamond-studded gold jewellery is the availability of small commercial quality cut and polished diamonds.Had it not been for Indiaís polished diamonds, studded jewellery would have remained a prerogative of the affluent. With the small commercial quality diamonds, of which almost 100% are at present processed in India, it is possible to manufacture moderately priced studded gold jewellery for world markets. However, this advantage has not been exploited by India. Other countries import cut and polished diamonds from India to manufacture studded gold jewellery. It is an anomalous situation that whereas India exports Rs. 15,501 crore worth of polished diamonds, its share in studded jewellery exports is very negligible.

 

In fact, many new jewellery manufacturing centres have come up in Hong Kong, Singapore and Thailand, besides the traditional centres in the USA and Europe. These centres prospered by exporting studded jewellery using Indian-cut small commercial quality diamonds. At the same time, the Indian jewellery industry stagnated without exploiting this unique advantage.

 

Table - 9: Exports of Gold Jewellery and Imports of Gold Bars

 

 

 

(US $ In Million)

 

 

 

 

 

 

Description

90 -91

95-96

98-99

99-00

00-01

01-02

 

 

 

 

 

 

 

Exports

203.01

569.16

846.15

1087.37

1149.95

1166.80

Imports

138.97

347.87

394.80

438.79

497.08

543.41

Value Addition

64.04

221.29

451.35

648.58

652.87

623.39

 

 

Table - 10: India's Exports of Gold Jewellery - EPZ-wise

 

 

 

 

 

(US $ In Million)

 

 

 

 

 

 

Description

90 -91

95-96

98-99

99-00

00-01

01-02

 

 

 

 

 

 

 

Total Export of Jewellery

203.01

569.16

846.15

1087.37

1149.95

1166.8

% of Zones to Total Exports

25.95

47.82

51.58

51.29

47.88

43.36

Jhandewalan

8.11

0

0

0

0

0

SEEPZ

44.58

227.74

406.16

525.29

507.47

504.25

MEPZ

0

0.95

1.58

2.44

2.52

1.68

NOIDA

0

43.47

28.71

30.03

40.59

0

DTA

150.32

297

409.7

529.61

599.37

660.87

 

 

 

 

Table- 11: Exports of Gold Jewellery from India to Major Markets

 

 

(US $ In Million)

 

 

 

 

 

Countries

90-91

96-97

98-99

99-00

00-01

 

 

 

 

 

 

U.A.E.

33.98

105.69

139.07

168.22

230.13

U.S.A.

42.56

86.21

436.55

598.60

646.21

U.K

67.99

65.16

80.34

98.21

102.10

Kuwait

4.32

12.55

21.63

11.22

13.31

Germany

0.00

0.00

25.48

27.30

19.49

Hong Kong

1.92

22.60

43.97

36.49

37.58

Singapore

2.69

20.97

19.77

30.87

39.59

Others

7.54

33.63

63.83

97.17

69.88

Belgium

0.00

0.00

10.28

28.09

8.18

Bahrain

0.00

0.00

12.15

5.79

2.37

Return Consignments

0.00

0.00

-6.92

-14.59

-18.89

Total Exports

161.00

346.81

846.15

1087.37

1149.95

 

 

 

ACKNOWLEDGEMENTS:†††††††††

FINANCEMAN ASSOCIATES acknowledges the use of various printed and electronic media for compiling the content, ideas and statistics on the gems and jewellery industry presented on this web page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of published text and statistics that are in the public domain. The place of jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai, Maharashtra, India.

Copy Right © 2007 FINANCEMAN ASSOCIATES

 

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