Gems & Jewellery sector will have to explore Asean markets to grow exports

Chennai: As exports of gems and jewellery are declining, India will have to explore new markets, including some of the Asean countries, to arrest the de-growth.

Asean countries like Thailand, Indonesia, Malaysia and Cambodia are not significant markets as far as gems and jewellery exports are concerned.

According to the data from Gems and Jewellery Export Promotion Council, Thailand buys $593 million worth goods from India and accounts for 1.5 per cent of the total exports from India. The share of Malaysia, Indonesia and Cambodia is negligible.

However, the industry will have to focus on these less-explored markets during times when the key markets are slowing down and pulling down overall exports.

Indian gems and jewellery exports have been de-growing for the past several months. The exports of FY19 too had de-grown and were 22 per cent lower than the export value achieved in FY11. The US market has been stagnant for a while. The trade war has seriously impacted the off-take by China via Hong Kong.

"The industry will have find out newer markets so as to offset de-growth in the traditional markets,” said Sanjay Kothari, Vice Chairman, KGK Group.

According to him, the middle class population in these markets are increasingly spending on consumption items. Some of them are opening up and present an opportunity for exports. Companies having bases in India as well as in Hong Kong can easily access these markets.