Hong Kong has remained one of prime foreign markets for India’s gem & jewellery industry. This can be authenticated with help of the figures provided by India’s Gem & Jewellery Export Promotion Council (GJEPC) which indicate that total exports of gem and jewellery from India were US$36.2bn, for the period January – November 2014. Hong Kong is the second-largest export market for Indian gem and jewellery. Exports to the country, during this period were US$11.5bn.
Mr. Vipul Shah, Chairman of the GJEPC, says, “India has remained the world’s largest manufacturer for cut and polished diamonds for many years. Indian diamond polishing factories are on par with the world’s best, offering cutting edge technology. Added to this is the fact that exports from India have benefitted owing to the strong financial base of the industry. The trade shows being organized in Hong Kong every year have always provided apt platforms to showcase India’s capabilities to the world.”
Stressing the importance of Hong Kong market, Mr. Pankaj Parekh, Vice Chairman of the GJEPC says, “Hong Kong is widely considered as the gateway to China. For the Indian Gems and Jewellery industry, the trade shows organized in Hong Kong are perfect platforms to showcase its products to the attendees based from the region. In 2014, the export of gems and jewellery to Hong Kong accounted for US$ 11,091.17 million contributing to 31% of the total exports from India.”
As Hong Kong is one of the major trading hubs in the world, India’s presence at Hong Kong Gems & Jewellery shows is an opportunity to boost its exports. Moreover, Hong Kong’s free-trade policy contributes to a business-friendly environment. No duties or restrictions are imposed on precious jewellery products or materials.
Talking about Indian jewellers’ and diamond traders’ credibility in foreign markets, Mr. Parekh says, “The Indian industry is popular among the foreign traders for its talented craftsmanship, its superior practices in cutting and polishing fine diamonds and precious stones, and its cost-efficiencies.”
“The Indian traders are well equipped to meet any demands of the foreign markets with industry friendly policies. Moreover, the industry adheres to strict quality control and complies with International business and quality standards including Best Practice Principles (BPP) and Business Excellence Model (BEM). On the ethical business practices, the industry is committed to adhere to the Kimberley Process Certification System for Conflict free diamonds, and comply with the protocol of no child labor or forced labor. Also the industry complies with OECD guidelines for responsible sourcing of gold,” he adds.
Mr. Parekh further says, “In response to the requirements for transparency in their business model and for compliance of dealers of precious metals and precious stones in the backdrop of legislative and administrative framework of Financial Action Task Force (FATF) and in order to enable both financial as well as the industry at large to be able to have access to information about clients, The Council is also in process of developing the MYKYCBANK model for a “Know Your Customer” interface.”
Hong Kong is a perfect global platform for the Indian Gems and Jewellery industry to cater to a wide range of markets in and around the Hong Kong city and the neighboring regions.
If we compare the export figures of last 6 years made available by the GJEPC, the exports of Gems and Jewellery increased from to US$ 5,781.00 million in 2009 to US$ 11,091.17 million in 2014. In terms of percentage, there has been an impressive increase of 91.8% in total exports from 2009 to 2014. So it is needless to say that, the Hong Kong remains an important market to the Indian gems and Jewellery industry.
Posted by Suresh Chotai
