New Media

Bush visit will add visibility & value to Indian Jewellery exports

What do you expect from the visit to India by the President of the United States, George Bush?
The Bush visit is a medication for India and its huge market. India is seen as a real good trading partner for them. So whatever trade policy the US will implement is going to benefit India.

So what kind of positive vibrations do you think Bush's visit will create for promoting bilateral trade that will include a whole lot of commodities, especially polished diamonds?
As far as the gems and Jewellery industry is concerned, Bush's visit is going to be the most important and significant because 50 percent of the world's jewellery is being sold to the US. As far as diamond production of India is concerned we are the largest and 80-90 percent of the world's polished diamonds are being cut and polished in India. So whether the jewellery is going from India, Hong Kong, Germany, or Italy, all the diamonds are coming from India. Bush's visit will be significant for other commodities as well. But we being the major producers of polished diamonds that, the jewellery sold in the US, which is our largest market, will make our visibility be of greater significance to the people of the US at large.

Today our share in the world market is quite large. Apart from diamonds, we have been in the world jewellery market for the past 15 years. Our share is negligible compared to the other countries in the export of jewellery because of various laws and we entered into the export arena a little later compared to other countries and markets where the jewellery industry has been around for 50-100 years. In spite of our being strong in the domestic market, we never touched the export market. In view of the Indian government's agreement with the US, we are able to export to the US without duty. And in 2006 they will be reviewing and extending it further. This would add to the value of the Indian jewellery business which is still growing as only about 5-10 percent. After having attained the Number One position in diamonds, if we want to have a quantum jump in the jewellery industry, the Bush visit will help it.

But what are the impediments coming in the way? You mentioned about various laws which are hampering growth?
I was talking about the past, about 1991, when the liberalization era was not yet in, and all the machinery which was required for making these exportable jewellery was not yet available to us, and if available, it was at a higher rate of duty. Gold was not available to us at international prices.
All these things have been taken care of and in the last 15 20 years we have been able to enter the world jewellery market.

So what is the outlook for the world jewellery industry overall and the US market in particular?
I think even if the US economy is a little bit on the slow side today still the future is always there. And as I said earlier, that even though our market share is negligible still there is a vast potential for overall growth. If our market share had been 50-70 percent it would have affected us to some extent. But I do not think that as far as jewellery is concerned it would be affecting us. As I said we are the world leaders in diamonds and we have no issue there. I see a bright future as far as the industry is concerned. The growth would always be there. Even though there are many industries, which are not doing well, our growth has been around 15 percent..

Are there any other factors, which would give a good boost to the US market, or any other markets in general?
In the US market you have the anti-money laundering law and we are committed to that and are in favour if it. We are going with the government laws, but if they are simplified which is understood by the exporters, it would help us to a great extent, so that genuine businessmen are not caught unnecessarily in a web of anti-money laundering laws.

How is the Council going to help?
The council is doing promotional efforts. We have been taking part in all international exhibitions, particularly in the US. In Las Vegas, the Council is taking part with large number of exhibitors and trade delegations are going all around the world promoting the Indian diamond and jewellery industry. We are also holding a big exhibition here in May, where we expect a large number of visitors and also people from the US.