IDEX Magazine editor in chief Danielle Max talked to the Gem and Jewellery Export Promotion Council (GJEPC) about its central role in the Indian diamond industry. This interview was published by www.idexonline.com.
Danielle Max: What is the role and purpose of GJEPC in the Indian diamond/jewelry business? On whose behalf does it act?
The Gem and Jewellery Export Promotion Council: The Gem and Jewellery Export Promotion Council has over the years worked towards moulding the scattered efforts of individual exporters to make the gem and jewelry sector a powerful engine driving India's export-led growth.
GJEPC has facilitated the creation of a pool of artisans and designers trained to international standards so as to consolidate the Indian gem and jewelry industry and establish it as a prominent global player in the gem and jewelry segment.
The organization acts on behalf of the Ministry of Commerce for the Indian gem and jewelry sector and today has not only established India as a gem and jewelry trading hub, but is moving towards creating “Brand India.”
How is the organization funded?
GJEPC was set up in 1966 by the Ministry of Commerce and Industry, and today caters to approximately 5,500 exporters. The organization is self sufficient and is also partly funded by the Ministry of Commerce and Industry for certain export oriented programs.
Why is there a need for an umbrella organization like GJEPC? How does it differ from the All India Gems And Jewellery Trade Federation (GJF)?
GJEPC, the apex body of the gem and jewelry industry, has played a significant role in the evolution of the sector to its present stature. Under its governance, all exports and international trade is regulated. As given above, such a body is required in every industry to streamline the scattered efforts of various industry players not just for the benefit of the industry, but the Indian economy as well. GJEPC, while it is a body set up by the Commerce Ministry, acts as a bridge between the industry and the government. Over the years, while the Council has built its membership and grown manifold, it has lobbied for the various requests such as the Octroi [a local tax collected by the municipality on goods brought into a district for consumption] issue/ trade and policy issues/ taxes and the setting up of Bharat Diamond Bourse, among others.
GJF on the other hand is a national trade federation for the promotion and growth of trade in gems and jewelry across India only. It is a federation that has come together, for managing various aspects of fair trade practices and efficient organization of business in the gem and jewelry industry in India among retailers. Under its ambit is business done at the national level.
However, together GJEPC and GJF monitor trade, facilitate business platforms and regulate business for the Indian Gem & Jewellery industry.
What are the main activities of the GJEPC?
Under the ambit of streamlining trade and facilitating business platforms for the Indian gem and jewelry players, the GJEPC organizes a plethora of events and activities that help towards the said goal.
It hosts 15-20 India pavilions in various countries and across trade platforms. JCK Las Vegas, the Hong Kong Show, Jewellery Arabia, Baselworld, to name a few.
The Council organizes summits with leading trade markets to expose them to the Indian products and at the same time give the Indian players an opportunity to interact with the leading players from across the globe in a stimulated environment. Indo-Russia summit, Indo-Euro summit, Indo USA, among others.
In the recent past, GJEPC has stepped up from being a flourishing center of trade to being one of the leaders that monitor this business. Organizing the Mines to Market for the diamond industry is one such initiative. This year, GJEPC plans to hold the Mines to Market conference for colour stones.
We organize global events that bring international interest to India, such as the India International Jewellery Show (IIJS), now Asia’s second-largest show and India International Jewellery Week (IIJW), which is the only one of its kind in the world.
Finally, GJEPC also monitors export figures on a monthly basis.
Are you concerned about the shift of manufacturing to China? How is the Indian industry coping with this situation?
While China provides healthy competition to the Indian industry in the Asia Pacific region, India today stands at a threshold of expansion and is inching towards creating Brand India as a force to reckon with.
Today, we are the leaders in diamond manufacturing and a recognized center for global gem and jewelry trade. Our strategies have become aggressive and we have the government backing us at every step.
All this goes to say that while we acknowledge China's expansion as being a volatile competition, India is prepared to surge forward and lunge into the next era, which will define Asian countries as the leaders in this trade, along with China.
How did GJEPC help businesses during the recent economic downturn? How did it change the way the organization operates? Are plans in place to deal with a similar situation in the future?
The Gem and jewelry industry is one of India’s leading foreign exchange-earning sectors and over the year has witnessed considerable growth in the volume of exports. The performance of this industry is critical as it contributes 16.67 percent to India’s total merchandise exports.
While one cannot deny that the industry was hit badly during the economic downturn, this can mainly be attributed to the fact that the U.S. is the largest consumer of jewelry in the world so when that country’s buying power fell, so did our business,
GJEPC took up the challenge and used the down time to focus its energies on tapping markets that were unexplored by us for business. As such, GJEPC reached out to countries in Russia and Europe and nurtured trading relations.
The efforts have clearly played off since the gem and jewelry sector witnessed an increase of 46.89 percent in full year 2010-2011.
Today, GJEPC is confident of the position of the industry and is not leaving any stones unturned to surge forward and create Brand India. With IIJS declared as the “India Show” and with the Commerce Ministry entrusting GJEPC to organize the India Palace at BaselWorld, the Indian industry is not only prepared to handle a future downturn, but has put the previous one way behind it.
Long term, where do you see the Indian industry headed? How is the GJEPC equipped to deal with any changes?
Like mentioned before, India is at the threshold of global expansion. Today, we are the manufacturing center for gems and jewelry, tomorrow we create Brand India that countries can associate with.
Today, we attract international properties to Indian Shows such as IIJS and IIJW, tomorrow, these will be global events recognized by every jeweler across the bandwidth.
From our side, the future is bright, the talent is immense, services are better, technology is upgraded and with the constant support from the ministry, the gem and jewelry industry is booming.
