Global demand for Indian silver jewellery has witnessed enormous demand in the last five years. Consumer preferences have been fast changing in the overseas markets; and silver is apt for modern designs and taste of some consumers who are not in favour of the strong yellow gold colour. Silver therefore comes in handy especially for entry level plain silver jewellery as well as studded (diamonds or color stones) jewellery, in comparison to the more expensive metals like platinum or white gold.
Silver jewellery exports from India have risen four times in the last five years. India’s Gem & Jewellery Export Promotion Council recently announced its financial year figures which showed that the country’s silver jewellery exports recorded $2,959 million in the financial year 2015-16 compared to $566 million in FY 2010-11. And from the previous financial year 2014-15 when exports of silver ornaments registered $2,052.10 million, this financial year’s statistics shows a rise of 44%... a commendable rise!
“There is a silver lining in silver jewellery exporters. Until a few decades ago, India was exporting primary silver bars. Today, the world can see our presence in silver jewellery. Our growth indicates that we can easily become the largest silver jewellery exporter in the world,” said Praveenshankar Pandya, Chairman, Gems and Jewellery Export Promotion Council (GJEPC).
While Thailand, China and Turkey are reported to be leaders in silver jewellery manufacturing, India is not far behind. Of late, the country is forging ahead to be on par with other countries. And designers of silver jewellery are making the most of the opportunities before them in the form of high demand from consuming markets. The growth in silver jewellery exports from India has opened up immense growth in the manufacturing arena in the country, with not only the existing companies entering silver jewellery manufacturing but new entrepreneurs are more than interested to enter this genre of silver jewellery.
In overseas markets, demand for silver jewellery is rising by the day, more due to the subdued price quote and growing consumer confidence in the metal. Customers have been lured to pick silver, an alternative to gold, as it has gained guaranteed buyback. These were the reasons that resulted in growth of silver jewellery exports from India, and demand for silver jewellery has seen a huge growth from across the globe in recent years.
According to reports, the international markets have witnessed a decline in silver prices by 50%. Currently, silver is trading at around $15 to $16/oz, marginally recovering in this financial year 2016-17. In Indian domestic markets, however, due to depreciation in the Indian rupee the impact of price fall was limited. In domestic currency, silver slipped to $555.95 per kg, a decline of 34% from the level of $846.03a kg in FY 2011-12.
The slowdown in European manufacturing activity over the last few years is seen as a benefit for India. Keeping the overseas customers in mind, India focused on modern, contemporary jewellery designs. Jewellery manufacturers too have invested immensely in technology advancement and modernized their production facilities. Now, India is able to reap the advantage of its expertise in the jewellery sector. Some manufacturers have set up large warehouses and showrooms in consuming countries to grow their businesses overseas.
A recent World Silver Survey by GFMS team at Reuters claimed that global silver jewellery fabrication demand reached new high of 65 mn ounces in 2015. The report said that the increase was largely due to a 16% jump in fabrication in India and Thailand; and a 5% increase in North America.
Though India is in the nascent stage in terms of silver jewellery exports, there is enormous scope for growth in exports as well as in the domestic market. The younger generation in India are also drawn to exclusive jewellery in silver, plain as well as studded with colour stones/diamonds. According to statistics, India’s silver import too jumped four-fold in the last three years from 1900 tonnes in 2011-12 to 7954 tonnes in FY 2014-15.
The market for silver jewellery is huge but the industry needs the support of the government related to duty drawback on silver, which will go far in the growth of exports of silver jewellery. Favourable policies will help Indian exporters to satiate the huge appetite for Indian jewellery in global markets.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough&Polished
