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Strong demand for Indian silver jewellery abroad; exports likely to go up by 35% in FY 2013 |
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MUMBAI: India's silver jewellery exports will continue to lead in this fiscal year as the US and Europe prefer more of white metal jewellery to gold items due to a spike in gold prices and growing slowdown pressures. The exports are likely to go up by 35% in FY 2013, says Rajiv Jain, chairman of the Gems and Jewellery Export Promotion Council (GJEPC).
During 2011-12 , silver jewellery exports grew to 44% compared with gold jewellery export growth of 30%. India, the biggest consumer of white metal jewellery, has found a new class of buyers in the West who will invest less than $100 (Rs 5,200) in jewellery. "The new class is emerging fast and growing stronger. Consumers in overseas markets are buying more of silver jewellery worth less than $100 than investing in gold jewellery , which is out of their reach due to slowdown pressures and rising gold prices," says Jain.
The white metal jewellery exports for FY12 stood at Rs 3,681 crore against Rs 2,567 crore in FY11. Whereas, gold jewellery rose to Rs 45,960 crore as against Rs 35,269 crore previous fiscal year. For March, when the gold jewellers were on strike for 21 days against government's import duty, silver exporters shipped Rs 561-crore worth jewellery compared with Rs 366 crore in March 2011. The demand for silver is expected to go up in India as well. India's silver imports may come down between 3,500 tonne and 4,000 tonne from last year's 4,800 tonne.
"The monsoon will play a big role in creating new demand for silver jewellery," says Prithviraj Kothari, president of the Bombay Bullions Association . Bullion traders in India hope that the prices may touch an all-time highs of . 1,00,000 per kg by this year-end , if the positive rally continues.
"The trend is fast picking up. Investors and jewellery lovers prefer more of silver jewellery as gold prices go up consistently. If the positive sentiments can keep up the pace, silver prices may go over Rs 1 lakh, beating last year's Rs 75,000 levels," says Ketan Shroff, managing director of Pushpak Bullions.
Source : economictimes.indiatimes.com
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