Gems and jewellery demand to top $30 bn by 2015

Monday, 24 September 2007, 07:00 Hrs
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New Delhi: The insatiable Indian craving for gems and jewellery and increasing disposable incomes will see demand skyrocketing to $20 billion by 2010 and $30 billion in 2015, says a leading industry chamber.

The jewellery market, estimated to be $13.5 billion in fiscal 2006-07, is also likely to employ 300,000 additional workers every year, the Associated Chambers of Commerce and Industry of India (Assocham) said.

The growth in purchasing parity of the middle class and surging income levels have resulted in consumption growth of gems and jewellery by about 11 percent in the five-year period preceding 2006-07.

India consumes nearly 800 tonnes of gold that account for 20 percent of world gold consumption, of which nearly 600 tonnes go into making jewellery.

"Diamond jewellery consumption is likely to jump to nearly 80 percent in 2010 and over 95 percent between 2010 and 2015," said Assocham president Venugopal N. Dhoot.

"Worldwide gems and jewellery industry has been growing at a good pace and is currently estimated at over $130 billion. In India, it accounts for nearly 20 percent of total Indian exports. It provides employment to 1.3 million people directly and indirectly," Dhoot added.

The gems and jewellery sector has been witnessing a lot of changes, as a result of which their manufacturing is largely focussed on technological innovations and sophisticated designs, Assocham said.

The chamber has suggested establishing professional institutes offering vocational courses on gems and jewellery, as the industry is largely dependent on skilled and trained labour.

It has also urged simplification of the tax system, which is at present multi-layered and complex. The chamber has also highlighted plummeting exports of gems and jewellery due to appreciation of the rupee against the dollar.
Source: IANS
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