Expectations strong as IIJS opens in Mumbai
August 30, 2007
By Teresa Novellino
Mumbai,
India—Despite some recent challenges for the Indian jewelry industry, the mood was positive on Thursday as the India International Jewellery Show (IIJS) opened at the NSE Complex in Mumbai, where some 25,000 total visitors are expected.
Recent statistics support the optimism. For the 2006-2007 fiscal year, India's total gem and jewelry exports increased 2.7 percent to $17.1 billion, compared with $16.6 billion for the 2005-2006 fiscal year.
Now, however, a combination of two factors—the strengthening Indian rupee and the recent termination of the original Generalized System of Preferences Program, which allowed India to import gold jewelry into the United States without paying import duties—appear to pack a one-two punch for the industry. But industry officials at the show's inaugural ceremony say they expect to roll with the difficulties.
"In spite of the strong rupee [and the tariff situation], I am sure we can achieve growth of 15 percent to 20 percent in the coming year," Gem and Jewellery Export Promotion Council Chairman Sanjay Kothari said.
Shri Ashwani Kumar, India's minister of state for industries and a guest of honor at the opening ceremony, noted the industry's strong export history but said more efforts are needed to grow profits, which he cited as hovering at 2 to 3 percent.
"Certainly on the export front, [the industry] has done well," he said. "It's now time to look inwards. We have a growing domestic market."
In addition to the buying potential of India's fast-growing middle class, he also pointed toward the industry's need to seize on growth areas, such as the recent trend toward fashion jewelry.
Kothari noted that there are plans to form a national council of gems and jewelry within a year, and a hope to grow the industry to $230 billion by 2015. Some of that growth could be spurred by a new show that the IIJS is launching in February in Goa, an idyllic Indian resort area that is expected to draw industry members eager to mix business with pleasure.
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