INDIA PLANS TO CAPTURE 10% OF THE US$6-7 BILLION CIS
21 September 2006
India’s Gem and Jewellery Export Promotion Council (GJEPC) recently
led an 8-member delegation representing leading manufacturers from
different sectors such as diamond, colored gemstones, silver and
jewelry to CIS Nations including Armenia, Georgia, Azerbaijan,
Ukraine and Kazakhstan.
The key objective of the visit was to strengthen bilateral trade
between the gem and jewelry industry in India and those countries. The
delegation explored the potential of the gem and jewelry market in
the CIS nations, analyzed the possibility of sourcing raw materials,
supplying cut and polished diamonds as well as gold jewelry, and also
discussed cross participation in jewelry exhibitions.
"The gem and jewelry delegation visit to CIS nations was a very first
sector specific delegation and the initiative was very successful. The
total market size across the CIS countries along with Russia is
estimated at US$6 to US$7 billion with Ukraine providing the maximum
growth potential. GJEPC plans to capture 10 percent of this market in
the next 2-3 years through various aggressive initiatives," explains
Sanjay Kothari, Convener-PMBD, GJEPC.
As for future courses of action, the GJEPC will promote the import
of polished Russian diamonds through the CIS countries, and intends
to focus on the supply of loose diamonds and colored gemstones in
the CIS nations having a good market.
In order to enjoy more duty benefits while importing jewelry to Russia,
GJEPC plans to encourage exporters to export semi-finished jewelry
to the CIS countries and set up small manufacturing units in CIS
countries where the semi-finished jewelry can then be converted to
finished jewelry. Indian jewelry manufacturers also plan to undertake
an exchange program of jewelry designers in order to understand the
trends prevalent in the CIS nations.
Investment in the mining sector for colored gemstones and silver is
being contemplated as a means to alleviate India’s sourcing problems.