Weak Rupee Raises Hopes for Indian Exports

RAPAPORT… A weaker rupee against
the US dollar has helped boost exports to leading markets such as the US and
China, attendees at the India International Jewellery Show (IIJS) reported.



“The jewelry and
diamond and colored-gemstone business is flourishing,” Gaetano Cavalieri,
president of the World Jewellery Confederation (CIBJO), said in an address at the inauguration of the IIJS Premiere, which opened August 9.


A tightening of bank
lending to the diamond sector in India following bank-fraud allegations will
probably not have a big impact on large, well-run exporters, jewelers told Rapaport
News. However, the stricter credit conditions will affect smaller companies
with weaker balance sheets, they added.


In the coming years, global exports of Indian gems and jewelry are
predicted to reach $70 billion, compared to a projected $41 billion in 2018,
Pramod Agrawal, chairman of the state-backed Gem & Jewellery Export
Promotion Council (GJEPC), told a news conference at the inauguration.


Silver jewelry,
combined with the latest technologies in plating, has performed outstandingly
among Indian gem and jewelry exports in 2018, he continued.


Responding to recent
guidelines from the US Federal Trade Commission (FTC) that expanded its
definition of “diamond” to include lab-grown stones, GJEPC vice chairman Colin
Shah said the changes were unlikely to lead to a surge in unscrupulous
marketing. Some industry members already mislead consumers as to diamonds’
origins, he noted.


Jean-Marc Lieberherr,
CEO of the Diamond Producers Association, disagrees with the FTC
guidelines, he said at the show.


“It will give
marketers the opportunity to test the limits,” he said.


India’s largest trade
show, which takes place in Mumbai and runs through August 13, expected more
than 35,000 visitors, mainly from Asia. The event added a new section, Hall A7,
featuring 800 booths, organizers said.


With security
extremely tight, some exhibitors complained about long lines to enter and exit
the halls, which were crammed with visitors.


Jewelers stocking
on-trend designs were busy receiving orders from wholesalers and retailers.
Pastel colors were popular in Indian-jewelry designs, while rose cuts were
sought after in the diamond category. Layer necklaces and multi-finger
rings featuring colored gemstones and diamonds were also in demand.