With the dip in gem and jewellery exports following the global recession, the exporters might take a closer look at the domestic market to boost business.
Diamond exports, which were growing at about 5-6 per cent for the last few years, dropped by about 7-8 per cent to $13.02 billion in 2008-09 from $14.2 billion in 2007-08.
Diamonds account for almost 75 per cent of the total gem and jewellery basket and its consumption in domestic market has been growing at over 100 per cent in the last five years, according to Mr Vasant Mehta, Chairman, Gem and Jewellery Export Promotion Council.
“We do not expect the exports to pick up if there is no turnaround in recession by August-September. However, in 2010-2011, the situation should improve and diamond exports can grow by 5 per cent again,” Mr Mehta observed.
Talking about the growth of diamond consumption in domestic market, Mr Mehta said, “Even till few years back people in our country preferred gold over diamond as it could be traded easily. But over the last five years we have witnessed demand for diamond growing fast.”
New markets
The Council, Mr Mehta said, was looking at venturing into new markets such as China, the CIS countries and West Asia to offset the slowdown in demand from the US.
Gem and jewellery exports to the US, which accounted for 25 per cent in 2007-08, fell to 20 per cent in 2008-09 and the highest importer was the UAE at 31 per cent (21 per cent in 2007-08), he pointed out.
Source : Business Line