Diamond jewellery losing `shine' in US, eyes China

Diamond jewellery faces competition from other products such as electronic gadgets and high-end branded luxury items offered in markets like that of US, Japan and Europe, said Mr Ashish Goenka, Managing Director of Suashish Diamonds Ltd.

If the system of preference ends in the US, it will bring India on par with Chinese products, as they do not enjoy the preference.

Chinese products are recognised internationally, said Mr Vasant Mehta, Vice-Chairman of GJEPC. This might put some pressure on the margins of the companies. However with back-end efficiencies and constant product innovation, the proposed end of preference should not be a problem, Mr Goenka said.

Economic performance in a country has an important bearing on the diamond trade. Hence with the slowing economic growth in the US, Indian companies are on the hunt for newer markets, in addition to considerable focus on domestic market as well.

'We are witnessing strong economic growth in India and China; so we are focusing on expanding our operations in these two markets,' he said. Recently, GJEPC delegation visited China to explore trade opportunities. If the Chinese market opens and implements zero duty, China will mean a huge market for India, said Mr Mehta. Currently gem and jewellery attracts a 4 per cent import duty in China.

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