JEDDAH/RIYADH, 21 May 2003 — India has expressed interest in importing jewelry from Saudi Arabia. “India manufactures 22 and 24 carat gold jewelry. Lightweight plain gold jewelry of 9, 14 and 18 carats can be imported from the Kingdom,” Sanjay A. Khotari, chairman of the Commerce Ministry-sponsored Gem and Jewelry Export Promotion Council, told reporters.
“We’ve already made a proposal to our government to reduce import duty on jewelry to five percent and are hopeful of a positive response from the Commerce Ministry. In that case we will find it cheaper to import jewelry from the Kingdom,” Kothari said.
Kothari, who is accompanied by Pankaj Parekh, convener of the council’s gold jewelry panel, eastern region, said he held meetings to convince Saudi importers that it was “much cheaper” for them to import diamonds from India than from countries like Belgium and Italy.
India is the largest producer of cut and polished diamonds, accounting for 60 percent of world production. “We account for 92 percent in terms of pieces and 85 percent in terms of volume,” he said.
India exported $9.1 billion worth of gems and jewelry last year, amounting to one-fifth of the country’s total exports. Fifteen to 20 percent of those exports were to the Middle East-Gulf region, he said, adding that exports to the Kingdom totaled just $6 million. However, under the policy of liberalization allowing re-exports, we hope to increase our share of the Kingdom’s market,” Kothari said.
He also outlined the Gemological Institute of India project that becomes operational in Bombay by June-end offering three-year full-term courses, from grading of diamonds to their processing and manufacture.
Kothari said he expected a delegation of Saudi importers to visit the India International Jewelry Show scheduled in Bombay from July 18-21. He said attendance at the show would also help Saudis to examine joint venture possibilities as gems and jewelry manufacturing in India could be economically feasible and cost-effective in view of cheaper labor. “Saudis could set up ventures in Bombay’s free trade zone with wages one-third cheaper and without the burden of duty and taxation,” he said.