Indian jewellery coming soon to local markets

Uncut gemstones may head in the opposite direction: official.

NEW DEHLI: The first-ever meeting between jewellery representatives of Pakistan and India has mapped out the possibilities of allowing trade of the precious metal, according to Indian newspapers.

Despite having the same taste of jewellery, trade stands at an approximate meagre amount of $15 million. Since direct access is not allowed, the precious yellow metal makes its way after making a brief stop in another country including Sri Lanka, UAE and other Asian countries.

A 12-member Indian delegation led by Gems & Jewellery Export Promotion Council Vice Chairman Sanjay Kothari for the first time visited Pakistan from June 7 to 12 and met leading traders and Prime Minister Yousaf Raza Gilani to discuss the possible entry of Indian jewellery in Pakistan.

“We can tentatively say that direct jewellery export to Pakistan may commence in a couple of months,” Kothari said. Pakistan’s jewellery market is estimated at $12 billion while India’s annual jewellery exports almost triple at $32 to $33 billion.

Direct access to Pakistan’s jewellery markets will partly compensate the export deficit to European countries which has declined significantly due to the ongoing economic crisis in the euro zone region.

Pakistan also has a huge amount of raw coloured gemstones which Indians may import for processing. 11 out of 12 diamonds produced in the world are processed in India. Hence, cutting and polishing of Pakistani coloured gemstones will help India’s manufacturing sector grow, said GJEPC Chairman Rajiv Jain.

While direct jewellery export to Pakistan is set to begin soon, Indian exporters are planning to restrict dealings on a business-to-business (B2B) basis.

Kotheri said that it would be impossible for Indian jewellery to directly be available for consumers like they do in other countries.

Pakistani consumers are interested in ethnic wear in addition to Jaipur-linked traditional jewellery items, according to experts. Talking about growth possibilities, Kothari said it depends upon how soon Pakistan government reduces tax barriers.

Published in The Express Tribune, June 19^th, 2012.