Gems exports rise

The country's gems and jewellery exporters will be able to meet their target of $18.5 billion this fiscal, despite a sharp appreciation of rupee.

Cheaper imported raw material, which constitutes 70 per cent of their finished products, is expected to neutralise the impact of a robust rupee.

The Gems and Jewellery Export Promotion Council had set a target of $18.5 billion for the current financial year against $17.2 billion achieved in 2006-07.

"We have already achieved exports worth $9.4 billion for the April-September period, a 26 per cent growth year-on-year," Council chairman Sanjay Kothari told reporters on Thursday.

Since the gems and jewellery sector is an import-based industry, the rupee appreciation makes the raw material less expensive.

He said the industry is looking at an growth rate of 8-10 per cent this year, adding that of the $17 billion exports achieved, diamonds constituted 80 per cent. The domestic gems and jewellery industry is valued at $15 billion.

"We are looking at a total market size of $50 billion by 2015, of which exports would be around $30 billion," he said.