Mumbai: India’s Gem & Jewellery Export Promotion Council (GJEPC) recently organised the first ever India US Jewellery Buyer Seller Meet (BSM) in Mumbai. It was attended by leading Indian jewellery exporters with a delegation of over 32 topmost jewellery buyers i.e. 23 from United States and 9 from New Zealand, Ireland, Spain, United Kingdom and Germany – comprising a mix of jewellery retailers, wholesalers and distributors as representatives of merchandising/ buying groups and best practice groups of independent retailer jewellers as well as VP merchandising and buyers from large and small regional chains. America is the largest (by value) jewellery market in the world. Over 23 prominent export houses exhibited their products at the three-day business matching program.
Addressing media representatives during the three day- BSM, Mr. Colin Shah, the Vice Chairman of GJEPC said, “We are keen to take maximum advantage of the on going US China trade war to boost India’s jewellery exports to the US. But we are facing certain policy hurdles, if they are addressed favourabley by the Government, we hope to do better to take the fullest advantage of the opportunity.”
India’s gems and jewellery sector hopes to tap a $1-billion export opportunity arising out of an ongoing trade war between the United States (US) and China. The opportunity came India’s way after the US levied a 10% import duty on import of gems and jewellery from China, taking the tariff to 20.5%. A few months ago, the US imposed a 5.5% tariff on import of jewellery from India which still leaves the country with a 15% advantage over China.
India’s total exports of gem & jewellery to the US grew 16% to USD 10.48 bn in FY19 from USD 9.064 bn in FY16. Exports to the US (USD 10.48 bn) accounted for 26.3% of the total gem &jewellery exports of USD 39.76 bn in FY19. India’s exports of gold jewellery studded with diamonds to the US were USD 1.37 bn while those of plain gold jewellery and other studded gold jewellery in FY19 were USD 290.62 mn. India’s exports of Cut & Polished diamonds to the US were USD 8.31 bn in FY19 (up 26% from FY16).
US buyers are looking at India favourably as the country already exports $10 billion worth of jewellery there. “Apart from cost effectiveness, we prefer the design and technology–enabled natural diamond jewellery studded with colour gemstones. We will certainly go back (to the US) and look to place some orders. India has been a preferred choice for us,” said Trish Roberson, a senior official with Roberson’s Fine Jewelry, a US-based jewellery retailing company. But some see threat in rising gold prices which have dented jewellery demand in the US.
Many jewellery retailers have started lowering their inventory in anticipation of weak demand next year with elections due in the US.
“Rising gold prices have posed certainly a deterrent for jewellery sales in the US. With the Citi forecasting the bullion prices to hit $2,000 an oz by the end of calendar 2019, it will be disastrous for jewellery retailers,” said Gem Water, another US-based buyer.
