Assocham says gems and jewellery sales will touch $30 billion by 2015

The Associated Chambers of Commerce and Industry of India (Assocham) has estimated that India''s gems and jewellery market will expand to $20 billion by 2010 and to $30 billion by 2015. It was $13.5 billion in the year ending March 2006-07.

The chamber has estimated that the gems and jewellery industry will employ 300,000 additional workers every year. The industry currently provides direct and indirect employment to 1.3 million people. This expansion will come, according to Assocham, on the basis of strong growth in incomes.

Assocham president Venugopal N. Dhoot expects diamond jewellery sales to rise 80 per cent by 2010 and 95 per cent between 2010 and 2015; this segment had sales of $2.5 billion dollars in 2006-07. In the half-decade to 2006-07, the gems and jewellery business grew about 11 per cent. According to Dhoot, over $130 billion worth of gems and jewellery industry were sold worldwide last year.

He says this industry accounts for about 20 per cent of Indian exports. According to Assocham, around 600 tonnes of the 800 tonnes of gold that India buys is used to make jewellery. The country consumes a fifth of the of the world''s gold sales.

The Assocham report stresses the need to focus on technological innovations and sophisticated design. It suggests the creation of institutes that would impart skills related to the gems and jewellery business.

While the domestic market is buoyant, there are fears of exports being adversely affected by the appreciation of the rupee against the dollar. The report also calls upon the government to simplify the tax system.