The 2nd Indo-US Jewellery Business Relationship Development Conference was held in Mumbai on September 8-11, 2008.
It was organized by the Indian Gem & Jewellery Export Promotion Council (GJEPC), with Rio Tinto as its major sponsor. The organizers hosted nine companies and industry associations from the United States: Fred Meyer, Sterling, Reeds, Leading Jewellers of the World, Retail Jewellers Organization, Cardow Jewelers, Columbia Emeralds, QVC and Judith Ripka. The Indian side at the conference was represented by 11 Indian companies including several DTC sightholders.
According to the first estimates, American retailers were content with the results of this meeting. Michael Barlerin, Executive Director of Leading Jewelers of the World, said he knew two member-companies of the organization, which took part in the conference without any intention to buy since they had already made their orders for the coming season. However, after visiting the Indian enterprises they also placed some of their orders there.
Judging by the response of the majority of participating retailers it was clear that their attitude was caused by the possibility to see everything with their own eyes and hence it could be said that the conference met the expectations of the Indian side.
Indian jewelry and diamond exporters welcome the strengthening of the U.S. dollar versus the Indian rupee since in the period of its weakness they had to buy imported rough materials at higher prices.
However, exchange rate fluctuations remain to be the source of their anxiety. Agreeing that a stronger U.S. dollar would be good news for Indian jewelry and diamond exporters and having already run into problems due to a slowdown on the American market, GJEPC Chairman Sanjay Kothari says he would rather have the rupee exchange rate at 42-43. “It would give us a clear picture when we make our forward contracts”, Kothari said.
Due to a stronger dollar India’s overall export grew 22.3 percent up to $42.84 billion in the first quarter of the fiscal year. Export was up 23 percent reaching $155.5 billion in the 2007-08 financial year despite the rupee growing by more than 13 percent during the year.
The situation started to change also on the Indian domestic market. Gold jewelry sales, which are usually at their leanest phase during monsoons, have seen an upsurge ahead of the festival season taking into account the marked trend for more stable gold prices at a level acceptable for consumer vision.
Gold sales have been unprecedented even in small centers. There has been a 20-percent rise in the sales of both jewellery and coins and bars in August, according to industry estimates across the country.
“There has been a sudden surge in demand during monsoons, and even we are facing a shortage,” said Narendra Singhvi of Pratik Jewellers and president of Udaipur Jewellers Association. India’s gold imports in August jumped 45 percent from a year ago, the first annual rise this year, due to lower prices and upcoming festivals.
