Home breadcru News breadcru Association/Org breadcru Gems & jewellery export to fall by Rs 20,000 cr: ASSOCHAM

Gems & jewellery export to fall by Rs 20,000 cr: ASSOCHAM

06 Sep '07
3 min read

The impact of this 17% appreciation would result into nearly 8.7% export fall of gems & jewellery and RMG exports after adjusting the review cost.

The review cost is that cost in which both exporters and importers agree to upwardly review their original export orders to compensate for rupee strengthening against dollar so that the exporters margin are not hit disproportionately with importers continuing sourcing their export consignments from original exporters.

Likewise, RMG exports which stood at nearly Rs.38,000 crore in fiscal 2005-06 went up to about Rs.48,000 crore for fiscal 2006-07 and were initially anticipated to further grow to over Rs.60,000 crore in current fiscal.

The Chamber further says that exports sops as announced by government need to be urgently implemented so that Indian gems & jewellery and RMG products are continued to acknowledged the world over for their exquisite craftsmanship particularly, in countries like USA, Belgium, Israel, UK, Hong Kong, UAE, Singapore and even Thailand and Switzerland.

In the absence of suitable corrective measures, rupee appreciation will help other economies such as those of China and Taiwan to take away India's market share of gems & jewellery and RMG exports in the above identified countries.

The Indian gems & jewellery and RMG industry is one of the important foundation of the country's export growth. It is not only a major foreign exchange earner but also one of the fastest growing sectors. Maharasthra and Gujarat contribute more than 90% of India's total polished diamond exports.

The industry is highly export and import oriented, labour-intensive and employment oriented. Realising the potential of this sector, the government declared it as a thrust sector for export promotion but continue rupee appreciation will hit this sector the most and therefore government assistance is urgently recommended for gems & jewellery and RMG, concluded Mr. Dhoot.

The Associated Chambers of Commerce and Industry of India

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