Friday, June 18, 2010

Riding on the back of surging global demand for gems and jewellery, especially cut and polished diamonds, exports from the industry have increased by 31.24% to touch US$2.46 billion in May 2010. Even as the Eurozone debt crisis threatens the trade of gems and jewellery exporters, most of which are SMEs, the latest figures are expected to give them a reason to rejoice.

“The gems and jewellery sector is presently facing a shortage of skilled labourers. After the US withdrew the Generalised System of Preferences (GSP) on jewellery post-recession, there have been huge job cuts in the sector. Now, with the rise in exports, we expect to get our workers back into the industry, which would bolster the sector further,” said Pankaj Parekh, chairman (Eastern region) of Gem and Jewellery Export Promotion Council (GJEPC).

This comes in the backdrop of the sixth consecutive month of growth in Indian exports in April 2010, which was fuelled by the growing demand for products such as gems and jewellery and textile, among others.

“A greater demand from countries like the UAE and Russia could be stated as the cause for this rise in jewellery exports. However, we still do not have state-of-the-art machinery, as import duty on the same is quite high. This is preventing SMEs like us from deploying superior technology to boost our business,” said Ziauddin Shaikh, owner of Zara Gems and Jewellery, a mid-sized unit in Mumbai which is engaged in export of precious rough stones.

With the demand for Indian gems and jewellery growing at the steady rate, it can be expected that Indian SMEs in the gems and jewellery sector will be glittering like gems too.

Sreemita Bhattacharya