epages News [Jewellery, April 2003]

• Gem and jewelley trade shines on dollar account
• China opens up its jewellery market
• Jewellery exports up 30% to $1.5bn
• War-hit diamond firms succumb to SARS
• Jewellery has a gem of a year
• FJIL organises mega jewellery show
• De Beers trains its sights on Jharkhand
• Tanishq expects Rs 400 crores jewellery sales
• Back to Jewellery Archives

Gem and jewelley trade shines on dollar account

Apr 01, 2003: The $8.5bn gem and jewellery export trade is poised for a major boost with the government accepting its suggestion for diamond and jewellery dollar account for exporters. In the Exim policy, the authorities have made the provision for diamond and jewellery dollar account for exporters dealing in purchase and sale of diamonds and diamond studded jewellery.Nominated agencies can now accept payment in dollars for cost of import of precious metals from EEFC (Exchange Earners Foreign Currency) account of the exporter.

This will facilitate the foreign mining countries to set up sales offices in India, which will boost exports and help India emerge from the largest diamond manufacturing centre as the world’s largest trading centre. Under the new policy, all sales from the domestic tariff area (DTA) to SEZs will be treated as physical exports. Subcontracting facility provided to EOUs and SEZs would boost jewellery exports and help increase employment.

China opens up its jewellery market

Apr 03, 2003: Mumbai: Prospects for Indian diamond and jewellery exports to China have improved substantially with China further liberalising imports of gold and jewellery items. As a step towards further liberalisation, China announced that gold jewellery manufacturers, wholesalers and retailers would no longer need to obtain a special license from the Central Bank for Imports. The move opens the way for overseas bullion dealers and jewellery manufacturers to open or expand their businesses in China. India is the world leader in diamond exports and such a step will open up a major Chinese market for Indian diamonds and jewellery.

China was mainly importing a limited range of diamonds so far, but with the further liberalisation of imports and involvement of the trade, Indian diamond and jewellery will have bright prospects. India is also rapidly liberalising the gold and diamond markets. The recent Union budget and the Exim policy that followed have tried to address various problems faced by the exporters. Still various regulations like institutional importers, leading exporters and NRIs continue, allowing the recognised institutions to exploit the situation of short supply.

Jewellery exports up 30% to $1.5bn

Apr 12, 2003: Mumbai: The government's liberalisation plans for jewellery imports took a U-turn even as exports from the country jumped nearly 30% to touch $1.5bn for the year ended March '03. Union finance minister Jaswant Singh had, in the Budget, made an announcement of allowing jewellery imports by paying a customs duty of Rs 250 per 10 gm as against duty of Rs 100 for gold imports. Even before the policy could be implemented, the government has withdrawn the facility for import of jewellery at Rs 250 per 10 gm and raised the duty level to 30-35%.

The government has reversed the policy under pressure from vested interests, but in the process the local industry will be kept away from the latest technology needed for taking exports to $5bn in the next few days, stressing the need for competition to improve quality. Exports of cut and polished tones were up 5.1% at $182.7m. India controls 60% of the world diamond market by value, 82% by volume and 92% by number of pieces. India is traversing from being the world's largest manufacturing centre to the world's largest trading centre and has set to achieve the target of $16bn in the next 5 years as against what has been set for '10.

War-hit diamond firms succumb to SARS

Apr 12, 2003: Ahmedabad: Severe Acute Respiratory Syndrome has dealt a severe blow to the country's Rs 3,60,000-crore diamond exports business. This is double-trouble for the industry as Israel-based traders have already reduced trading following the US-Iraq war and the unstable political situation in the Middle East. India exports diamonds worth over Rs 8,000 crore to Hong Kong-based jewellers annually. Like most other businesses in the SARS-infected city, jewellers too have downed their shutters and started deserting the small island, which is one of the biggest jewellery centres in the world.

Industry sources say that for the Indian diamond industry, Hong Kong is the second biggest export market after the US, accounting for nearly 24% of the total exports of cut and polished diamonds. It is also one of the four biggest jewellery centres of the world along with Japan, Israel and the US.

Jewellery has a gem of a year

Apr 15, 2003: Indian gem and jewellery exports registered yet another sparkling performance during the just concluded financial year 2002-03, with exports surpassing the $9-bn mark for the first time. Exports by this sector scaled a new all-time high of $9.1bn last year at a time when some of the world’s major economies were in the grips of an economic slow-down and there was grave concern over the Iraqi war.“This is a 21% jump over actual exports of $7.5bn achieved in 2001-02 and it surpasses the earlier target of $8.2bn and even the revised target of $8.7bn set for last year,” according to the Gem and Jewellery Export Promotion Council.

With this remarkable achievement, India’s share in the world diamond market zoomed to 60% in value terms, 82% in volume and 92% in number of pieces. With 92 of every 100 diamonds in the world coming from India, exports in terms of number have hardly any possibility for growth. The only possibility is processing of high value diamonds and more concentration towards exports of value-added jewellery.

FJIL organises mega jewellery show

Apr 21, 2003: Ahmedabad: Fine jewellery (I) Ltd (FJIL), one of the largest exporters of diamond jewellery in the country, organised a mega jewellery meet ‘Fine Toss’ in Ahmedabad to popularise its products in the city and persuade city jewellers to sell them. The 100 crore plus enterprise, having ISO certification and a workforce of over 600 people, aims to be the one-stop-shop for all requirements. Fine jewellery has manufacturing facilities spread over 37,000 sq ft in SEEBZ and a third in MIDC, Andheri. Fine jewellery offers a wide range of gold (while and yellow) and platinum ornaments including pendants, earrings and sets with over 10,000 patented modern and traditional designs.

De Beers trains its sights on Jharkhand

Apr 22, 2003: Kolkata: De Beers, the world’s largest diamond company, has now set its eye on the fledgling state of Jharkhand. It recently submitted an ‘expression of interest’ for diamond and associated minerals prospecting and mining licences in Jharkhand. De Beers has already cornered sizeable areas of diamond prospecting and mining leases, in states like Orissa, Chattisgarh and Madhya Pradesh.

Other big international names in mining business like Rio Tinto and BHP Minerals, Australia too have shown interest in ferrous and non-ferrous multiple mining leases in Jharkhand. In India, De Beers has at least three special purpose vehicles, through which it has cornered an aggregate of over 17,000 sq. kms. of diamond prospecting and mining leases in states of Orissa, Chattisgarh and Madhya Pradesh. De Beers India Minerals, De Beers India Prospecting and De Beers India Survey are wholly-owned subsidiaries of the De Beers group for its forays in India.

Tanishq expects Rs 400 crores jewellery sales

Apr 30, 2003: Bangalore: Tanishq, the Tata group's jewellery division, expects sales of Rs 400 crore during the current financial year. Tanishq, which has 58 exclusive boutiques in 46 cities of the country, plans to add new boutiques in the year. Tanishq is targeting the trendy contemporary woman for the Solo range, which includes pendants, ear studs and finger rings. It is unlike traditional solitaires in the market, which customers frequently find difficult to match with other jewellery. The collection, which starts at Rs 7,700 also has sets which ranges up to Rs 68,000.