The war in Iraq is over but the impact will be reflected in the quarterly results of the gems and jewellery companies in the forthcoming announcements for the quarter ending March 2003 and also for the year ending March 2003.
"Traditionally the last quarter sees a lot of trade, which was not the case this year due to the war," said Praveen Shankar Pandya, convener, programme and development, of the Gems and Jewellery Exports Promotion Council.
The US led invasion of Iraq is expected to hamper gems and jewellery exports, said Sanjay Kothari chairman of GJEPC, without assigning any number, while announcing the annual export figures for the industry.
"Traditionally market conditions have improved after situations like this as was the case in Gulf War in early 1990s or even after September 11, 2001, so now that the war is nearly over, we expect that orders will pick up," said Kothari.
"However, the orders were not cancelled and we expect that these orders to come through in the next few months," said Pandya.
Political uncertainty along with the outbreak of Severe Acute Respiratory Syndrome reduced participation and the number of visitors at the recently held Basel Watch and Jewellery Trade in Switzerland. Indian firms at the exhibition have done the same volume of business but it was too early to give out numbers, said Bakul Mehta, vice chairman of GJEPC.
India has 60 per cent share by value of the global diamond market, but only about 6 per cent of the jewellery market. Both segments saw decent growth over last year's exports. But GJEPC wants Indian jewellery manufacturers to improve quality and increase market share in the global market.
Most of India's exports were to the US. The depressed condition there from last year affected jewellery sales. "This sector has immense potential and can do good business if there is upgradation in technology for jewellery manufacturing units, said Kothari.
"We want India to become one of the largest trading centres from one of the largest manufacturing hubs, in the gems and jewellery industry," added Kothari.
GJEPC would be opening its Indian Institute of Gem & Jewellery in Mumbai in order to step up production of jewellery for exports. Investment in the institute would be Rs 16 crore (Rs billion). The school was expected to become operational by June-July 2003.