A STUDY ON COMMODITY WISE EXPORTS OF GEMS AND JEWELLERY FROM INDIA

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1 A STUDY ON COMMODITY WISE EXPORTS OF GEMS AND JEWELLERY FROM INDIA N.BHUVANESH KUMAR 1 S.GOKULAPRIYA 2 1 Assistant Professor of NGM College, Pollachi 2 Research Student, PG Department of Commerce with International Business, NGM College, ABSTRACT Pollachi Exports of gems and jewellery products India has made credit-worthy progress over the years if we go by the volume of foreign exchange earned every year. However, India need to upgrade the quality of jewellery in keeping with the requirements of the European countries. In his study, stated that exporters of Indian gems and jewellery products have started participating in the international fairs from where they now get the requisite feedback.the study is made for the purpose of an in depth analysis of various indicators and its effect on export performance of Indian gem and jewellery industry. The data for the study is selected based on the availability. In order to execute uniformity, the parameter export data year wise is collected from Although there is manufacturing of about 18 Products have been selected for data collection. The study makes use of statistical techniques such as percentage analysis, Trend analysis, Growth analysis, Standard Deviation and CAGR analyzing the data for finding the result. Based on the above study we can find that all the aspects related to this Gem & Jewellery products show a positive growth steadily. The government to give advises to gems and jewellery board. It may help to increase export.the growth of exporter lies in the technical advancements, and maintenance of good will to beat the competitions, which is extruding now as well as in the future. Keywords: Gems and Jewellery, Export, Gem and Jewellery Board INTRODUCTION Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation to another. The components of jewellery include not only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones. The Indian gems and jewellery market is set to cross US$ 36 billion by 2015, on the back of improving lifestyle and availability of skilled labour, as per a report Indian Gems and Jewellery Market Future Prospects to India, the largest consumer and importer of gold in the world, is projected to import around tonnes of gold in 2014, as per AnjaniSinha, head of the Indian Bullion Market Association (IBMA).As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during due to improved prices and Gems and jewellery by demand. The Gem and Jewellery Export Promotion Council (GJEPC) predicts that the gems and jewellery exports would witness a rise of around 5 per cent year-on-year during FY11.Industry Structure although, the market is highly dominated by the unorganized players, with increase in consumer income and economic prosperity, the future of organised retail in India is very bright. The graded/ branded jewellery sector is estimated to reach US$ 3.3 billion by 2010 on the back of quality consciousness among target consumers, as per a McKinsey report.the Gem and Jewellery Export Promotion Council's (GJEPC) performance figures for the financial year showcased the true resilience of the Indian industry over the last year when it continued with its consistent plans of building trading relations and penetrating newer markets.in its bid to enhance the market strategy, a 37 icmrrjournal@gmail.com

2 gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ million is being planned to be set up by Gold Souk, the jewellery mall developer. STATEMENT OF THE PROBLEM Development of the Industries depends on several factors such as financial, personnel, Technology, Quality of the product and Marketing. Out of these, financial aspect assumes a significant role in determining the growth of the Industries. In this situation the present study made to study the financial appraisal of diamond Industry to examine and to understand how management of finance plays a crucial role in the growth of these companies.scientific methods and techniques for effective marketing of spices and their associated products will be highly helpful to the general economic growth of our State because there are thousands of people depending on the spices sector for their livelihood including the producers. domestic traders, exporters, and the workers. Unfortunately, our spices sector is really suffocating due to a variety of problems. Generally, the price of a commodity must be either cost based or demand based. However a close observation of the prices trends show that this principle does not have much significance in the case of our major gold. Similarity, any upward vend in the prices of gem and jewllery should benefit the producers. But it is paradoxical to see that the producers of gem and jewllery never get the benefits of price hikes but they have to bear all the evils of adverse market conditions. This is a clear evidence to believe that there is something wrong with the present marketing system of gem and jewllery. SCOPE OF THE STUDY The present study has been undertaken to evaluate the role of the gem and jewllery Board in the cultivation and export of spices with particular reference to India. The scope of the study is to collect data and analyse the same in respect of the following and arrive at suitable conclusions and suggest ways and means to realize the full potential of the industry. Economic conditions and social analysis of workers in Gems and jewellery industry in India. The aim of this project is involved the export performance of Indian Gems and jewellery industry. OBJECTIVES OF THE STUDY The research aims at enriching the knowledge undertaking role of export performance of gem and jewellery.the following are the objective of the study. To study the role of gem and jewellery export promotion council. To analyze the commodity wise export of gem and jewellery from India. RESEARCH METHODOLOGY This study is based The methodology selected for the study will be here. The planned research design, methods of sample selection, data collection and analysis of results will be explained. Ethical considerations for this particular research study will also be detailed. DATA SOURCE The Indian gem and jewellery industry was selected. The sample was also restricted to Indian gem and jewellery only. The study used only secondary data, which are collected from the various 38 icmrrjournal@gmail.com

3 sources ministry of commerce,rbi bulletin,etc.the collected data from this source have been complied and used with due care. Other publications and magazines were also used to obtain relevant information s EXIM times, the management accountant, journal of international marketing, international journal of market research. SAMPLE DESIGN The study is made for the purpose of an in depth analysis of various indicators and its effect on export performance of indian gem and jewllery industry. The data for the study is selected based on the availability. In order to execute uniformity, the parameter export data year wise is collected from TOOLS AND TECHNIQUES Tools used for this study are Percentage Analysis Trend Analysis Growth Rate Standard Deviation CAGR CV PERIOD OF THE STUDY The study covers a period of 15 years ranging from 2002 to 2016 for gem and jewllery products and 5 years for country wise export of gem and jewllery from 2002 to AREA OF THE STUDY The study area is Choosen by Gem & Jewellery export Promotion Council. LIMITATIONS OF THE STUDY The study is limited only to exports of gem and jewllery industry in India Period of the study limited to ten years only. The data used in this study are secondary in nature as given by gem and jewllery. The findings are applicable only to gem and jewllery and hence cannot be generalized. REVIEW OF LITERATURE Verma, ManoharLall (1983) studied that a majority of the exporters in Indian diamond industry are facing various problems. The import of raw materials is the biggest problem for diamond manufacturers. He analysed that low quality and high prices of raw materials are the main problems of this industry that have been faced by the exporters. Lack of training institutes, little use of modern techniques and many others problems are in this industry. On the other hand, Verma stated that diamonds are the single largest export commodity earning foreign exchange. In his study he reported that in period of five years from 1979 to 1983, diamond imported by the USA from India rose from 33 per cent to 48 per cent and diamonds imported by Japan from India increased from 36 per cent to 50 per cent icmrrjournal@gmail.com

4 Purushothaman, Nair C. N. (1992) highlighted the export potential and problems of diamond industry. He told that the diamond industry is considered to be a member of the traditional industry group. Diamond industry in India is making larger contribution to our export earnings year after year. In terms of value the export earnings from diamonds were Rs crores in and Rs crores in He told that India is neither a source nor a market for diamonds, but only an intermediate processor, which imports rough stuff to be almost entirely exported after processing. He discussed various problems faced by the diamond industry in special reference to Kerala such as supply of poor quality stones, poor bank facilities, labour problem and arbitrary pricing etc. In the end he offered some suitable policy implications to get rid of various problems that have been faced by the diamond industry. Bijlani, Shanoo and Regan Luis (2010) reported that gems and jewellery industry has the potential to grow at an estimate of $ 45 billion to $100 billion by They stated that the jewellery industry featured two major sub-segments gold and diamonds with the former constituting 80 per cent of the jewellery market. Gems andjewellery Products (GJPs) are expected to grow at compounded annual growth rate of 15 per cent. However, the Indian gems and jewellery market is unregulated and pricing is mostly based on the value of gold and labour charges. Most purchases in jewellery are investment oriented and so, they get commoditized. The integration of jewellery, luxury and fashion should be the next step for the ever-growing gems and jewellery sector. Sridevi V. (2012), Export performance of Gems &Jewellery in India- An overview. To find out the future Export Performance of Gems and Jewellery in India for the Year ( ). To view references and further reading you must purchase this article. Export growth in India has been much faster than GDP growth over the past few decades. Several factors appear to have contributed to this phenomenon including foreign direct investment (FDI).However, despite increasing inflows of FDI especially in recent years there has not been any attempt to assess its contribution to India's export performance one of the channels through which FDI influences growth. Using annual data for this paper investigates the determinants of India's export performance in a simultaneous equation framework. Results suggest that the real appreciation of the rupee adversely affects India's export performance. Export supply is positively related to the domestic relative price of exports while the higher domestic demand reduces export supply. Foreign investment appears to have statistically no significant impact on export performance although its coefficient has a positive sign. The government has to encourage the domestic exporters and help them to export their product in International Market. Prof. S. P. Kaushik (2013), Exports of Gems and Jewellery From India, To evaluate the impact of World recession on the export performance of gems and jewellery. To identify different factors affecting gems and jewellery exports from India. To achieve this objective different secondary data related to gems and jewellery exports would be collected and analyzed. For primary data the Questionnaire would be administered and analyzed. Interpretation would be made accordingly. Different points selected through survey would be considered for making suggested action plan. Dr. Neelam Arora (2014), Gems and jewellery trade and total merchandise trade of india during the last decade,to analyse the Average Annual Growth Rate of Diamond Trade of India in relation to the growth rate of gems and jewellery trade and total merchandise trade of India. Export of processed diamonds depends mainly on the supply of rough diamondswhich are sourced internationally.in other words, the average annual growth rate of export of cut and polished diamonds from India is independent of the average annual growth rate of total exports from gems and jewellery sector icmrrjournal@gmail.com

5 EXPORT PERFORMANCE OF GEMS AND JEWELLERY PRODUCTS It has been attempted to trace out the overall export performance of Gems and Jewellery in India. There are around 18 items are being produced and exported under classification from various products of India. The framework of analysis includes, Growth rate Percentage analysis Trend analysis Standard Deviation CAGR CV LIST OUT THE PRODUCTS ARE USED IN THIS STUDY Natural Pearls Diamonds Precious and Semi Precious Stone Synthetic or Reconstructed Precious or Semi Precious Stones Dust and Powder of Natural or Synthetic Stones Silver Base Metals Clad with Silver Gold Semi Manufactured Clad with Gold Platinum Semi Manufactured Base Metal, Silver/Gold Clad with Platinum Waste and Scrap of Precious Metal Articles of Jewllery and Parts Articles of Gold Smith Articles of Natural and Cultured Pearls Imitation Jewellery Coin Other Articles of Precious Metal 41

6 ANALYSIS AND INTERPRETATION Export of Gems and Jewellery products from India (Values Rs in Lakhs) Year Base Precious and Synthetic or Metals Natural Semi Semi Synthetic Diamonds Silver Clad Pearls Precious Precious Stones with Stone Stones Silver Gold , ,585, , , , Semi Manufactu red Clad with Gold , ,815, , , , , ,660, , , , , ,141, , , , , ,793, , , , , , ,718, , , , , , , ,221, , , , , , , ,523, , , , , , ,407, , , , , , , , ,389, , , , , , , ,657, , , , , ,376, , ,801, , , , , ,835, , ,807, , , , , , ,744, , ,269, , , , , ,256, , ,930, , , , , ,074, AVERAGE CAGR SD CV

7 Year Platinum Export of Gems and Jewellery products from India (Values Rs in Lakhs) Semi Articles Manufactured of Waste and Articles of Base Metal, Articles of Natural Imitation Scrap of Jewellery Silver/Gold Gold Smith and Jewellery Precious Metal and Parts Clad with Cultured Platinum Pearls Coin Other Articles of Precious Metal , , , , , , , , , , , , , , ,351, , , , , , , ,514, , , , , , , , ,125, , , , , , , ,367, , , , , , , ,645, ,026, , , , , , ,206, , , , , , , ,737, , , , ,393, , , ,812, , , , ,140, , , , ,507, , , , , , , , ,557, , , , , , ,067, , , , , , ,147, , , , , , , , ,657, , , , , , AVERAGE CAGR SD CV

8 INTERPRETATIONS The above table shows the total export of eighteen Gems and Jewellery products that is exported fromour country during 2002 to The overall export performance of Indian Gems and Jewellery product during the study period was in fluctuation stage due to lack of demand in International trade growth rate. The average growth for Natural Pearls were was around but Diamonds registered the negative growth of -0.65%, because of lack of Products demands in the Country. Precious Ana Semi Precious Stone negative growth during this year s, because lack of Products demand in the country. While Synthetic Products shows the Positive growth of annually 1.03% due to because of lack of Products are available in our country. Silver Products shows the negative growth of annually % because of lack of Products demand in our country. Base Metals Clad With Silver that are exported from our country shows the Positive growth of around 0.04% annually and Gold also resulted a negative growth of -1.00% during the period. Platinum that are exported from our country shows the positive growth of around 0.95% annually and also attars and Semi Manufactured Base Metal, Articles of Jewellery and Parts also shown an negative growth of -0.91% during the study period. So, the lack of Products demands in the Country. West and Scrap of Precious Metal Products have shown a growth of -1.00% annually during the study period. Articles of Gold Smith registered a shows a negative growth of -0.95% during the fifteen year period. The high demanded products in Gems and Jewellery was Other Articles Of Precious Metal Products, Imitation Jewellery, Coin it registered growth of -1.00% annually. Exibit of Commadity wise Export of Gem and Jewellery 44 icmrrjournal@gmail.com

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10 INTERPRETATIONS The Above charts shows the trend value of Gems and Jewellery exported from our Country, It clearly shows export of natural pearls will be in increasing trend in future years. Export of Diamonds will be in increasing trend in future years. Export of precious or semi precious stones will be in decreasing trend in future years. Export of reconstructed precious will be in increasing trend in future years. Export of natural or synthetic stones will be in decreasing trend in future years. Export of silver 46

11 will be in increasing trend in future years. Export of base metals clad with silver will be in decreasing trend in future years. Export of gold will be in increasing trend in future years. Export of semi manufactured clad with gold will be in deccreasing trend in future years. Export of platinum will be in deccreasing trend in future years. Export of semi manufactured base metals silver, gold and platinum will be in decreasing trend in future years. Export of natural pearls will be in increasing trend in future years. Export of articles of jewellery will be in increasing trend in future years. Export of articles of gold smith will be in decreasing trend in future years. Export of articles of precious metal will be in increasing trend in future years. Export of articles of natural and cultured pearls will be in increasing trend in future years. Export of imitation jewellery will be in increasing trend in future years and Export of coin will be in increasing trend in future years. SUGGESTIONS Export wise The gems and jewellery board should take necessary steps to improve its foreign trade. Because the future trend of the board s export is in partially decreasing trend. The board has to produce some more variety of gems and jewellery products. The board should adopt some safety measures to avoid future losses. It is good to give more incentives to the small growers, it will be helpful for increasing the cultivation of gems and jewellery. It will be good to appoint extra employees in production plant.it may help to avoid wastages of production. It will be export the products to some more foreign countries it will be beneficial to make relationship with foreign countries. Gowernment The government to give advises to gems and jewellery board. It may help to increase export. The government should take necessary steps to reduce gems and jewellery users in domestic. The government to increase tariff rates and reduce export procedures it may help to increase exports. The board should adopt some safety measures to avoid future losses. It is good to give more incentives to the employees it will be helpful for increasing the production gem and jewellery. CONCLUSION The gems and jewellery products export fetch several crores of foreign currency to our country and provides an employment opportunity to our people. The production of the gems and jewellery products must be increased to increase the exports into global level. So, our gems and jewellery products can hike their share into global level in future. By, improving the exports of the gems and jewellery products, it will yield the benefit to improve our economy. Based on the above study we can find that all the aspects related to this Gem & Jewellery products show a positive growth steadily. It is sure that in future the Gems and jewellery board will 47 icmrrjournal@gmail.com

12 have positive growth rate and can able to come front in this field as a leading. If Gems and jewellery board follows the strategy and policy suitable to its environment it can be able to secure a significant portion of the world market. The growth of exporter lies in the technical advancements, and maintenance of good will to beat the competitions, which is extruding now as well as in the future. BIBLIOGRAPHY Ahmad, N., Outlook for Indian Gems and Jewellery Industry, Assocham Research Bureau, April, Director General of Commercial Intelligence & Statistics, Foreign Trade Statistics of India, Ministry of Commerce, Government of India, Kolkata. EXIM Bank, Indian Gem and jewellery: A Sector Study, Occasional Paper no. 138, Quest Publications, Mumbai, Gandhi, G.P., Trends in Gems and Jewellery, Market Survey by Former Research Officer of Indian Institute of Foreign Trade (IIFT), New Delhi, GJEPC, Ideal Cut the Newsletter of the Gem and Jewellery Export Promotion Council, Vol. No.19, 20 and 21, May-October, Jaikumar, R., Seminar on Net Foreign Exchange Earnings From Gems and Jewellery Exports, Published in Foreign Trade Bulletin, pp , August, Kala Alok, Journal of Gem and Jewellery Industry, International Journal House, Jaipur, Vol. 47, No. 4, April, icmrrjournal@gmail.com