It may be encouraging news for the Indian government that India’s gold demand during calendar year 2012 went down by 12% at 864.2 tonnes on year-on-year (y-o-y) basis, though the second half (July-December) saw demand going up by 23% compared to decline of 36% during the first six months of 2012. The statistics have been released by the World Gold Council (WGC) recently.
India’s government is hell bent up on bringing down country’s gold imports drastically by its so called ‘discouraging’ policies to control its ever-increasing current account deficit. The government has recently taken some drastic measures to control gold imports including the one under which it increased import duty on gold from prevailing 4% to 6%.
"The GJEPC...has now taken an initiative to organize B2C jewellery shows to give a boost to jewellery demand."
ShutterStock Image So, on one hand the government has been encouraged by the above statistics but the jewellery industry on the other hand has been discouraged as the government policies have started showing adverse effect on the industry performance. Although the jewellery demand in India has shown an increasing trend during 2012, it may start bearing brunt of the government policies in 2013. Industry leaders here feel that the government’s measures to curb gold imports would ‘destroy’ jewellery demand in coming years in India as the government may introduce more ‘harsh’ measures to discourage consumption of the yellow metal in country.
India’s Gem & Jewellery Export Promotion Council (GJEPC) is already disheartened by the industry’s recent export figures which have gone down during 2012. Now the government policies have added to its worries on local jewellery market front also. So now the GJEPC has decided to fasten its belt to arrest the impeding downfall in jewellery demand and gold consumption. It has decided to organize ‘Business to Consumer’ (B2C) jewellery show in Delhi along with its popular jewellery week IIJW to directly come into contact with consumers to increase the jewellery and gold consumption.
The India Trade Promotion Organization (ITPO) and the GJEPC recently announced their joint venture to organize the first India Gem & Jewellery Fair (IGJF) at a press conference held in New Delhi. The ITPO signed a Memorandum of Understanding (MOU) with the GJEPC to launch the first India Gems & Jewellery Fair (IGJF) in its bid to provide an added boost to the gem and jewellery industry from April 6-9th, 2013 at the Pragati Maidan in New Delhi.
Chairman of the GJEPC Mr. Vipul Shah says, "The IGJF would be GJEPC's genuine effort to organize its first B2C event. Our prime goal to collaborate with ITPO for the IGJF is to extend our reach to the customers directly and offer them an opportunity to view the varied range of jewellery from across the country, along with providing the Indian gem and jewellery industry the much needed boost as it continues to face hurdles like increasing prices of precious metals and adverse government policies.”
It is now an undisputed fact that India has traditionally been an enormous market for jewellery. Given the vast varieties in the Indian culture, which bear a huge influence on the country’s jewellery designs, the IGJF was comprehended as an ideal platform to introduce the consumers the array of jewellery crafts, designs and manufacturing capabilities that the industry possesses.
Indian Gem & Jewellery industry’s prominent and visionary personality Mr. Sanjay Kothari off late has been advocating the need of organizing B2C jewellery shows in country along other measures like generic promotion of diamonds to revitalize jewellery demand. The GJEPC, after declaring its determination to launch generic promotion of diamonds in local markets, it has now taken an initiative to organize B2C jewellery shows to give a boost to jewellery demand. The industry leaders here adulate it as a welcome step taken in the right direction.
