New Delhi, June 8 (UNI) A FICCI study has recommended a multi-pronged approach to position exports of gems and jewellery on to a higher growth trajectory.
The chamber has suggested transformation of the sector from family-owned to a professionally-managed business. There is a need for reinvention, innovation of designs, focus on new markets, and new technology along with the adaptability to global trends, consumer preferences and greater transparency in business for the sector to flourish further.
This four-fold strategy, says the FICCI study, will push exports from the current 18 billion dollars to 21 billion dollars by 2010 and 37 billion dollars by 2015.
The industry body also foresees an integration of jewellery, luxury and fashion as the next step in this ever-growing sector.
Exports from the industry fetched 17.1 billion dollars in 2006-07 against 16.64 billion dollars in 2005-06, showing a growth of 26 per cent.
While diamonds accounted for 64 per cent of the total exports, gold jewellery accounted for 30.47 per cent, coloured gem stones and others accounted for 1.44 per cent and 1.04 per cent, respectively last year.
The study notes that cut and polished diamond segment exports were 10.90 billion dollars, while gold jewellery exports fetched 5.21 billion dollars last year.
Coloured gemstone exports yielded 246.48 million dollars last fiscal, against 232.35 million dollars in 2005-06.
The growth momentum has continued into the current fiscal.
The gems and jewellery export industry grew by a robust 27 per cent export during the first half of the current fiscal at 9.4 billion dollars, as compared to 7.4 billion dollars in the corresponding period of 2006, according to the Gems and Jewellery Export Promotion Council (GJEPC).
The growth in diamond exports was 28 per cent, while it was at 21 per cent in jewellery and 22 per cent for coloured gemstones.
The major destinations for exports have been the US, the UAE, Hong Kong, Belgium and Israel.
In fact, the US, the UAE and Hong Kong together accounted for over 70 per cent of the total exports in the previous fiscal.
The booming economy along with the rapid increase in income levels is estimated to further accelerate the growth of this industry.
According to a KPMG study, India's growing importance in the global jewellery market is only expected to increase in the future.
Exports from the industry fetched 17.1 billion dollars in 2006-07.
Diamond jewellery consumption in India is also estimated to jump by 78 per cent in 2010.
UNI MP SR VC1202