September 25, 2007 :: Posted by - web_glnews :: Category - Uncategorized
An appreciating rupee is likely to impact India’s export of gems and jewellery as the increasing Indian currency would make these exports less spirited in key markets like the US, Hong Kong and UAE. Export of gems and jewellery would be unfavorably affected if the rupee appreciation against the dollar is not arrested, Assoc ham said in a study on the Gems and Jewellery model in the country.
Sops announced by the government should be implementing to arrest a possible refuse in gems and jewellery exports including those of cut and polished diamonds.
It also needs to be ensuring that exporters do not lose their boundary in markets of US, Belgium, Israel, Hong Kong, UAE, Singapore, Thailand and Switzerland, it said Of the 12 diamonds set in jewellery worldwide, 11 come from India.
Exports of jewellery from India, the world’s largest manufacturer, grew 24% for April-August period of the current fiscal to $7.75 billion. India’s export of gems and jewellery rose 3% to $17 billion in 2006-07 from $16.6 billion a day ago. While the rupee rise is hurting exports, the home market for gems and jewellery is witnessing healthy growth.
Changing lifestyles and rising income levels even in tier II and III cities will guide to a surge in demand for jewellery, which is anticipated to reach $20 billion by 2010 and $30 billion in 2015. The sector also holds the potential to produce additional employment for three lakh people annually, Assoc ham said.