Date:01/09/2004 URL: http://www.thehindubusinessline.com/2004/09/01/stories/2004090101370500.htm

Back Jewellery sector confident of achieving $16-b export target

Dhimant Bhatt

Mumbai , Aug. 31

THE domestic gems and jewellery industry is expected to achieve the export target of $16 billion by the year 2007 set by the Commerce Ministry following the special focus initiatives announced in the Foreign Trade Policy on Tuesday. ``We must compliment the Government because all our major suggestions have been accepted. We believe it will be an easy task for us to achieve the export target set by the Commerce Ministry. Diamond exports have reached a saturation point. Now, our major thrust is gold jewellery exports,'' Mr Sanjay Kothari, Chairman of the Gems and Jewellery Export Promotion Council, told Business Line.

The gems and jewellery sector is one of the largest foreign exchange earners for the country. The sector exported $12-billion worth diamonds and jewellery during the previous fiscal, a growth of 31 per cent.

"Overall, the export package announced today is good for jewellery manufacturers. About bullion trade, the inclusion of five-star trading houses along with other nominated agencies such as PEC and STC is really a welcome step. However, we are waiting for the notification about the permission given for import of gold of 18 carat and above under the replenishment scheme," Mr Bhargav Vaidya, Director of the Bombay Bullion Association, said."The package announced for the gems and jewellery sector will benefit jewellery manufacturers located outside the bonded area like SEEPZ. For large players like us, the policy is neutral. The reduction in transactional costs and increase in validity of licences is definitely welcome," Mr Nirav Bhansali, Director of Classic Diamonds (India) Ltd, one of the leading gems and jewellery-exporting firms, said.