Exports of gems and jewellery from India are expected to rise 5-7% in 2012/13, lower than an estimated 9% growth in 2011/12 that ends in March, as sourcing of rough diamonds and colour stones is the "biggest constraint", head of a trade body said.
India, which does not mine diamonds of its own, depends on raw materials from Botswana, Zambia and South Africa among others for supply.
"Every mining country wants to process diamonds and colour stones in their home country and increase employment there," said Rajiv Jain, chairman of Gems and Jewellery Export Promotion Council.
Jain expects gems and jewellery exports to rise to USD 47 billion in the fiscal year 2012.
Gems and jewellery constitute 17% of India's total exports, and employs 1.5 million workers.
Jain said the council was focussing on Latin American countries and Commonwealth of Independent States, along with China, to promote Indian jewellery, but will take time for substantial increase in the market share.
Source : moneycontrol.com