The year 2014 brought new rays of hope for India’s gem & jewellery industry. We had mentioned in our recent blog that it was a fruitful and consolidating year for India’s G&J sector which is now hopeful to see more such years in future.
Mr. Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC) says, “We are quite confident that things are slowly changing and it will soon start to improve for the whole gems and jewellery industry. The new Indian government is highly committed to solve the long-standing concerns of the industry. After reigning supremacy over manufacturing front, India is now headed for becoming the world trading hub with the government sanctioning Special Notified Zones (SNZ) in Surat and Mumbai.”
“Over the last few years, India has steadily established itself as the design destination for Jewellery in the world owing to its increasing capabilities in producing world class designs and jewellery that have accorded India the status of the sourcing hub for authentic and contemporary designs displaying traditional skill with modern design sensibilities,” he adds.
So far so good. The GJEPC has always focused on exploring new emerging markets through its sustained and focused programs in various regions. To provide impetus to the diamond and Jewellery trade, it is of course imperative on the Council to promote diamonds and boost consumer confidence.
But the industry still requires sustained efforts by the GJEPC and leaders to lead the sector to the next phase. India’s Commerce Secretary Mr. Rajeev Kher encourages the leaders to graduate themselves to take the industry to the next level. He insists on them to locate areas where value addition opportunities lie and to work at conquering that space. “So that India should not just remain leader in the cut and polished segment but also retail and branding,” he suggests.
To achieve this, it is important to keep track of global consumer preferences and trends rather than to merely follow what is emerging out of other countries. It is in these areas that the industry needs to augment its skills and capability. “The industry leaders should dictate the preferences in the global market rather than just responding to the demand. They should enhance skills and capacities in that direction so they can influence preferences of consumers and shape demand,” Mr. Kher advices.
India today enjoys major advantage in form of a young population, both as consumers and as a skilled workforce. If you associate the growth of a specific sector with overall economic growth and the prosperity of the country, then there is a normal connect and this drives the development of the particular sector, he thinks.
Mr. Vipul Shah feels, “India’s G&J sector new-found vigour and enthusiasm which has witnessed increase in FDI and has led to more disposable income with consumers. Also, the Indian diamond industry is heavily dependent on the world economy but with the last two quarters showing positive growth in the US, which is market for almost 50% of Indian G&J industry, we are highly optimistic about increased demand in this and coming years. The industry welcomes the steps to improve the infrastructure for exports in all states by forming an Export Promotion Mission by the Central Govt. All these efforts by the government and the GJEPC would certainly lead the industry to the next level.”
Posted by Suresh Chotai
