Export Performance of Gems & Jewellery in India - An Overview


By

V. Sridevi
Asst. Professor in Commerce
Dr. SNS Rajalakshmi College of Arts and Science
Coimbatore–641 049
 


Introduction

Diamonds, gems and Jewellery have been a part of the Indian civilization since its recorded history, the significance of the gems and Jewellery industry in the Indian economic scenario is a development of the last three or four decades. In 1966-67, the export turnover of the Gems & Jewellery industry was just Rs 220 m representing a 3 per cent of total merchandise exports. However, it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 875 bn during 2010-2011 and contributing 16 per cent of total exports, making it a significant foreign exchange earner for the country.

India is the world's largest diamond processing (cutting and polishing) country with around 1 million processors treating over 57 % of the world's rough diamonds by worth. According to recent reports, 11 out of 12 diamond (stones) set in jewelry are cut and polished in India. Processing is done on rough diamonds in a complete range of sizes and qualities, including stones larger than 10 carats. In terms of carat, India's contribution in this sector is about 80 % of the global market. Employing over 90 % of the global diamond industry workforce, the country also accounts for about 90 % of the volume of diamonds prose in the world.

The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner and also one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jeweler's forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond studded as well as gemstone studded jewellery. A predominant portion of gold jewellery manufactured in India is consumed in the domestic market. In diamonds, however, a major portion of rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewellery. Besides being the largest consumer of gold, India is also the leading diamond cutting nation in the world.

OBJECTIVES OF THE STUDY

* To study about the Export Performance of Gems and Jewellery in India for  the Year (2006-2011)
* To study Growth Rate for Export Performance of Gems and Jewellery in India for the year (2006-2011)
* To find out the future Export Performance of Gems and Jewellery in India for the Year (2011-2016)

RESEARCH METHODOLOGY

DATA AND SOURCES OF DATA

The study is based on secondary data.  The required data are collected from Journal, Magazines, Articles and Websites and so on.

PERIOD OF THE STUDY

The study period covers five year from (2006-2011).

DATA ANALYSIS

Data collected from various sources and were edited and tabulated. Analysis of data is done by using statistical techniques like.

* Trend Analysis
* Growth Rate

REVIEW OF LITERATURE

The review of literature plays a vital role in each study and needless to say. In this study literature regarding the designed problem has been connected and review of literature.

Kishore sharma (1960) Factors determining India's export performance in this articles said

References and further reading may be available for this article. To view references and further reading you must purchase this article. Export growth in India has been much faster than GDP growth over the past few decades. Several factors appear to have contributed to this phenomenon including foreign direct investment (FDI).However, despite increasing inflows of FDI especially in recent years there has not been any attempt to assess its contribution to India's export performance one of the channels through which FDI influences growth. Using annual data for 1970–1998 this paper investigates the determinants of India's export performance in a simultaneous equation framework. Results suggest that the real appreciation of the rupee adversely affects India's export performance. Export supply is positively related to the domestic relative price of exports while the higher domestic demand reduces export supply. Foreign investment appears to have statistically no significant impact on export performance although its coefficient has a positive sign.

Rashmi Bang (1997) The Export-diversifying Impact of Japanese and US Foreign Direct Investments in the Indian Manufacturing Sector in this article said the export-diversifying impact of foreign direct investment (FDI) in a developing country. FDI may lead to export diversification in the host country if it positively affects the export intensity of industries that have a low share in world exports. Indirectly, FDI may encourage export diversification through spillover effects: that is, the presence of FDI in an industry may increase the export intensity of domestic firms. The empirical results for the Indian economy in the post-liberalization period show that FDI from the US has led to diversification of India's exports, both directly and indirectly. However, Japanese FDI has had no significant impact on India's exports.

ANALYSIS AND INTERPRETATION

TABLE 1
Export Performance of Gems and Jewellery in India for the year (2006-2011)

 YEAR

SALES
 US $ Million

2006-2007

11755.2

2007-2008

12910.0

2008-2009

10356.7

2009-2010

15634.5

2010-2011

19631.6

                                                                      Source: CMIE Report

CHART - 1
Export Performance of Gems and Jewellery in India for the year (2006-2011)


INTERPRETATION

The above table and chart shows the export performance of gems and jewellery in India for the period 2006-2011. The export was highest in the year 2010-2011(i.e) 19631.6 US $ Million while compared to other year. Hence there was a continuously increases of gems and jewellery export performance in India.

TABLE - 2
Growth Rate for Export Performance of Gems and Jewellery in India
(2006-2011)

YEAR

VALUE  US$

2006-2007

0

2007-2008

9.8

2008-2009

19.8

2009-2010

50.96

2010-2011

25.57


CHART- 2
Growth Rate for Export Performance of Gems and Jewellery in India
(2006-2011)


INTERPRETATION

The above table and chart shows the growth rate for Export performance of Gems and Jewellery in India.  There was an upward and downward movement in the Export performance.  In the year 2009-2010 the growth rate was 50.96 and later in the year 2010-2011 it shows the decreasing growth rate (i.e.) 25.57.

TABLE 3
Trend Projected for Export Performance of Gems and Jewellery in India (2011-2016)

YEAR

VALUE IN US$

2011-2012

19600.79

2012-2013

21448.52

2013-2014

23296.25

2014-2015

25143.98

2015-2016

26991.71


CHART- 3
Trend Projected for Export Performance of Gems and Jewellery (2011-2016)


INTERPRETATION

The above table and chart shows the trend movement of gems and jewellery for the period 2011-2016. The trend value which shows highest in the year 2015-2016 (i.e.) US$ 26991.71 while compared to other years. Hence there will be a continuous increasing of the export performance of gems and jewellery in India.

FINDINGS

* The Growth Rate of export performance of gems and jewellery in the year 2010-2011 is 25.57 percentages.
* Trend value of export performance of gems and jewellery in the year 2011 -12 will be US$ 19600.79.

SUGGESTIONS

* Government must liberalize the custom duties and procedures.
* The government has to encourage the domestic exporters and help them to export their product in International Market.
* The exporter of Gems and Jewellery must know the procedures to be followed in the export.

CONCLUSION

Based on the study it shows that there is a continuous increase in the export of Gems and Jewellery in India. Gems and Jewellery Industry play a vital role in the development of an economy. It can expanded its markets in the global economy and can be recognized as a global to the exporters of the other countries and prove to be equally good in the export.

BIBLIGRAPHY

BOOKS REFERRED 
International Marketing Management - Francis Cherilum
Research Methodology - C.R. Kothari
International Trade – Francis Cherilum

JOURNAL
CMIE Report

WEDSITES
WWW.Google.com
WWW.Yahoo.com
WWW.cmie.com

1. Kishore sharma (1960) Factors determining India's export performance.
2. Rashmi Bang (1997) The Export-diversifying Impact of Japanese and US Foreign Direct Investments in the Indian Manufacturing Sector.
 


V. Sridevi
Asst. Professor in Commerce
Dr. SNS Rajalakshmi College of Arts and Science
Coimbatore–641 049
 

Source: E-mail January 27, 2012

          

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