The domestic gems and jewellery industry would continue to shine in the days ahead on the back of increased exports to the US, competitive skilled labour and adoption of leading-edge technology, according to market analyst ICRA.“The long term outlook for Indian diamond and jewellery industry continues to be positive,” ICRA said in its analysis.The growth in the gold jewellery business is likely to be driven by increased exports to the US and other markets and domestic consumption.Exports of gold jewellery rose by an impressive 106 per cent to Rs 7,301 crore in 2003 from Rs 3,542 crore in 1999. Though the exports were constrained by incompetitive prices and design capabilities, it said, adding “India has to adapt its design to meet the occidental tastes.”ICRA attributed the sharp increase in exports to pick up in demands in major markets like the US, Belgium, Israel and Hong Kong.It pointed that the advantage of Indian industry rested on its skilled labour force with an ability to readily absorb leading-edge technology.On the diamond jewellery industry, ICRA said despite low domestic consumption, India is still the leading diamond cutting and polishing centre, accounting for 53 per cent share of the global polished market in terms of value, 80 per cent in terms of caratage and 95 per cent in terms of pieces. Reflecting a pick up in global demand of cut and polished diamonds, Indian exports witnessed a 16.4 per cent rise to $8,023 mn in 2003 over the previous year.
