Weak Rupee Raises Hopes for Indian Exports

RAPAPORT... A weaker rupee againstthe US dollar has helped boost exports to leading markets such as the US andChina, attendees at the India International Jewellery Show (IIJS) reported. "The jewelry anddiamond and colored-gemstone business is flourishing," Gaetano Cavalieri,president of the World Jewellery Confederation (CIBJO), said in an address at the inauguration of the IIJS Premiere, which opened August 9. A tightening of banklending to the diamond sector in India following bank-fraud allegations willprobably not have a big impact on large, well-run exporters, jewelers told RapaportNews. However, the stricter credit conditions will affect smaller companieswith weaker balance sheets, they added. In the coming years, global exports of Indian gems and jewelry arepredicted to reach $70 billion, compared to a projected $41 billion in 2018,Pramod Agrawal, chairman of the state-backed Gem & Jewellery ExportPromotion Council (GJEPC), told a news conference at the inauguration. Silver jewelry,combined with the latest technologies in plating, has performed outstandinglyamong Indian gem and jewelry exports in 2018, he continued. Responding to recentguidelines from the US Federal Trade Commission (FTC) that expanded itsdefinition of "diamond" to include lab-grown stones, GJEPC vice chairman ColinShah said the changes were unlikely to lead to a surge in unscrupulousmarketing. Some industry members already mislead consumers as to diamonds'origins, he noted. Jean-Marc Lieberherr,CEO of the Diamond Producers Association, disagrees with the FTCguidelines, he said at the show. "It will givemarketers the opportunity to test the limits," he said. India's largest tradeshow, which takes place in Mumbai and runs through August 13, expected morethan 35,000 visitors, mainly from Asia. The event added a new section, Hall A7,featuring 800 booths, organizers said. With securityextremely tight, some exhibitors complained about long lines to enter and exitthe halls, which were crammed with visitors. Jewelers stockingon-trend designs were busy receiving orders from wholesalers and retailers.Pastel colors were popular in Indian-jewelry designs, while rose cuts weresought after in the diamond category. Layer necklaces and multi-fingerrings featuring colored gemstones and diamonds were also in demand.