India GJ Exports puff-up to US$ 28bn Reaches ‘Global GJ Hub’ Stature

Cut & Polished export grew up to 20.11%,
Gold jewellery export goes up to 9.38% and
Coloured gemstones export rose up to 10.55%

Rough import grew up to 14.13%,
Cut & Polished import goes up to 22.36% and
Synthetic stone import rose up to 55%

Total GJ export registered growth of 16%

Although what available is a provisional fact-n-figure of India GJ Export - Import for the FY 2009-10 yet I think it is enough to say that India GJ Industry has arrived at the ‘Global GJ Hub’ stature.

Cut & polished diamonds grew up to 20.11% and that worth of US $ 17.54bn to that previous FY worth US$ 14.60bn. Where as export of Synthetic stone which does not refers in general has grew up 100% and contributed minuscule value. Men-made stone is a strategic segment.

Upon looking at jewellery side, the interesting is non-gold jewellery than the gold jewellery. Gold jewellery segment has grown up to 9.38% where as non-gold jewellery shot up 76.58% growth. Gold jewellery exports worth US$ 9.42bn in the FY 2009-10 against the previous year, 2008-09 which worth of US$ 8.62bn.

Coloured gemstones reached this year FY 2009-10 to worth of US$ 286.65mn against the previous year that worth US$ 259.29mn and registered a growth of 10.55%.

Upon arrival of systemic rock hard scenario 2008-09, that was the day when the Council urged their players to stop diamond import for the month. Indeed that was a great move to undertake pipeline refinement. In the FY 2009-10, rough diamonds import grown by 14.13% to the corresponding previous FY and import of cut & polished diamonds grew up to 22.36% to the previous FY.

Another view is coloured gemstones. Import of rough coloured gemstone rose about 11% over the previous where as colour gemstone segment import grew up in the FY 2009-10 by 44% than the last FY. Rough synthetic stone import tumbled by about 29% and synthetic stone import that rose by 55% over the last FY 2008-09.

In the row of precious metals import Silver Bar that grew about 21% and Gold Bar grew up to 49.62% to the previous FY 2008-09 imports, where as compared to the previous FY 2008-09 import of Platinum in the FY 2009-10 tumbled down by about 95%.

Upon arrival of systemic economic turmoil major GJ centers affected in the globe. India played premeditated to attain strategic supremacy in the Global GJ Industry under the leadership of Shri Vasant Mehta, who landed the mammoth industry safely. De facto the attained growth is 36% up over pre-turmoil growth performance. India has came out as biggest jewellers to US by hiking up US import basket share by 5% over the last year and reached to 25%. Equally in the value term India grown up its global diamond share from 56% to 70%. This significant upward shift shows India edge to cut & polish any diamond of any big size.

According to Shri Vasant Mehta, Chairman, GJEPC, “After having undergone challenging times in FY 2008-09, the Indian gems and jewellery industry rose like a phoenix and is today experiencing upward trend due to GJEPC's constant endeavor to sustain trade relations with the US and also expand our horizon by penetrating other markets.” De facto, the GJEPC started talking ‘upturn’ since IIJS 2009. Lots marketing & promotional events under taken where gen-next’ took up lead especially in BSMs.

One would draw their conclusion and learn industry trends during the last FY 2009-10 by focusing on rough import that grew 14.13% while cut & polished import shot up 22.36%, rough coloured gemstones import grew by 11% where as coloured gemstone hiked up to 44% and equally import of rough synthetic stone that fell down to 29% synthetic stone that rocked up by 55%. Indeed that would be a hard move for any labour intensive industry to go layoff artisans and to bag growth by the end. Any real value addition could be brought by cutting & polishing more rough stones not that lay in any trading of just buying & selling of polished.

Sources says about 09 lac artisans are back & enrolled to carry value additions yet about 23% artisans are jobless since that massive layoff until H1, 2009. I think this is the time to call back artisans and to get shifted back to cut & polish more rough. De facto this is the job not only of industry to ensure such callback but also of a government to look in to industry, to generate more value addition by providing a hassle free road map.