Domestic Demand Keeps Indian Industry Humming

The Indian gem and jewellery industry converged on Jaipur for 2009’s final event and came away full of confidence for 2010. While alternate export markets are currently generating a good response, it is domestic Indian demand that is the primary demand driver. Shanoo Bijlani and Regan Luis report.

The Jaipur Jewellery Show (JJS), the last major gem and jewellery event of the year, which was held from 19 to 22 December, 2009, carried forward the positive business sentiment generated by the India International Jewellery Show (IIJS) in August last year and generated a positive outlook as the industry assessed its prospects for 2010. The coloured gemstone industry saw good prospects for the year, especially in traditional jewellery designs that feature gemstones. The show revealeda steady if moderate demand fordiamond jewellery going into the New Year.

De Beers Diamond Trading Company (DTC) managing director Varda Shine, who was the chief guest at the show, noted in her address at the opening ceremony, “We are
hopefully now exiting a period of extreme economic turbulence and I suggest that we will be able to look at sustainable growth and opportunities as we enter 2010. We must all be prepared to look at new markets, new product offerings and new ways of working as we head into the ‘new normal’. But we need to take a responsible approach as to how we do this and make sure that our entire industry works together to remain
strong as the opportunities emerge on the demand side.” Shine concluded her remarks by saying, “But I will leave you with one final thought and that is the one of unity. The unity of our industry is the key to our strength. Let us continue to make such events as today and let us all pull in the same direction as we head into of what will
be an exciting new decade for gems and jewellery and for Jaipur.”

The show’s tie up with the All-India Gem & Jewellery Trade Federation (GJF) resulted in more than 70 member jewellery retailers from across the country visiting the
event and generating much of the positive sentiment as they placed orders for finished jewellery as well as loose gemstones. The GJF showed some of the industry unity that Shine referred to by holding its annual board meeting at the venue. A pleased Vimal Chand Surana, the JJS show’s convenor, told Solitaire that the tie-up
with the GJF had resulted in even retailers from small towns visiting the show, thus increasing the Indian industry’s convergence.

Echoing this sentiment, Ajay Kala, JJS joint secretary and spokesperson said, “This seventh edition of the JJS proved to be a great success for jewellers from smaller towns as they were able to get a wide variety of designs at competitive rates.” The positive business sentiment was evident in the fact that the show featured more exhibitors than the previous edition and that over 95 per cent of the exhibitors were repeat participants, Kala observed.

Interestingly, Shine urged Jaipur to expand its role in the gem and jewellery industry by considering the processing of diamonds as well. “We stand on the cusp of hugely exciting times for the diamond industry with new vibrant markets starting to emerge, with India as a prime example, where the market has grown at a very impressive rate over the last few years,” she said, adding, “and there are more opportunities emerging for exporting not only to the traditional powerhouse market in the US, but also in the markets in the Far East.” As Shine herself noted, several Jaipur gem and jewellery firms are now leading diamond manufacturers – some are De Beers sightholders – and a number of these were recognised for the skill in special shapes like rose cuts. To date, however, Mumbai and Gujarat..........