STUDY ON COMMODITY WISE EXPORTS OF GEMS AND JEWELLERY FROM INDIA

STUDY ON COMMODITY WISE EXPORTS OF GEMS AND JEWELLERY FROM INDIA N.BHUVANESH KUMAR 1 S.PUNITHAVATHI 2 1 Research Guide & Assistant Professor, PG Department of International Business NGM College, Pollachi. 2 Research student, PG Department of International Business, NGM College, Pollachi. ABSTRACT 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 2005-2014. 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 2013, on the back of improving lifestyle and availability of skilled labour, as per a report Indian Gems and Jewellery Market Future Prospects to 2011. India, the largest consumer and importer of gold in the world, is projected to import around 500-550 tonnes of gold in 2010, 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 2010-11 due to improved prices and Gems and jewellery by demand. 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 gem and jewllery 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 gem www.icmrr.org 222 icmrrjournal@gmail.com

and jewllery sector for their livelihood including the producers. domestic traders, exporters, and the workers. SCOPE OF THE STUDY The present study has been undertaken to evaluate the role of the gem and jewellery 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 sources ministry of commerce,rbibulletin,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 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 2005-2014. TOOLS AND TECHNIQUES Trend Analysis Standard Deviation CAGR PERIOD OF THE STUDY The study covers a period of 10 years ranging from 2004 to 2014 for gem and jewellery products and 5 years for country wise export of gem and jewellery from 2009 to 2014. www.icmrr.org 223 icmrrjournal@gmail.com

AREA OF THE STUDY The study area is Chosen by Gem &Jewellery export Promotion Council. LIMITATIONS OF THE STUDY The study is limited only to exports of gem and jewellery 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 jewellery. The findings are applicable only to gem and jewellery 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. 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. 44.8 crores in 1970-71 and Rs. 618.40 crores in 1980-81. 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. Sevdermish, Menahem, Alan R. Miciak and Levinson (1998) studied in their paper the rise of the modern diamond cutting industry in India and its impact on the global diamond trade. They examined that the modern diamond industry in India grew at a remarkable rate, which is 82 fold by polished weight and 249 fold by polished value. Today India accounts for about seventy per cent by weight and thirty five per cent by value of diamonds polished annually worldwide. India has had a profound effect on this trade because of the enormous quantities of small and low-cost diamonds manufactured there. 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, Trend analysis. Standard Deviation CAGR www.icmrr.org 224 icmrrjournal@gmail.com

LIST OUT THE PRODUCTS ARE USED IN THIS STUDY Natural Pearls Diamonds Precious Ana 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 Polymers Of Ethylene Semi Manufactured Clad With Gold Platinum Semi Manufactured Base Metal, Silver/Gold Clad With Platinum Wst And Scrp Of Precious Metal Artcls Of Jewellery And Parts Artcls Of Gold Smth Other Articles Of Precious Metal Articles Of Natural And Cultured Pearls Imitation Jewellery Coin www.icmrr.org 225 icmrrjournal@gmail.com

ANALYSIS AND INTERPRETATION Export of Gems and Jewellery products from India Year Natural Pearls Diamonds Precious Ana Semi Precious Stone Synthetic Or Reconstruct ed Precious Or Semi Precious Stones Dust And Powder Of Natural Or Synthetic Stones Silver Base Metals Clad With Silver (Values in Lakhs) Polymers Of Ethylene Semi Manufactur ed Clad With Gold 2005 1035.45 5141052.6 118772.94 1035.79 6996.81 1990.24 15.72 132.36 6.61 2006 880.7 4793544.45 119224.3 1083.47 3933.2 8141.76 8.87 454.5 29.91 2007 1141.13 5718808.35 112855.22 1018.65 5341.23 4664.86 31.96 1876.15 4.41 2008 1533.21 7221056.91 281.91 7755.89 5060.73 6777.2 11.93 12893.29 9.47 2009 1735.17 8523149.72 309.24 6579.75 71297.97 42630.8 0.34 98272.12 14.73 2010 479.53 13407542.4 300.53 6678.43 28080.35 10516.2 2244.7 576318.29 8.62 2011 1007.26 13389659.3 361.89 9080.97 34864.99 12966.9 330.44 197993.67 14.23 2012 49478.94 12657983.4 707.78 16387.26 7604.38 23267.6 46.16 2376481.7 8.78 2013 190968.1 15801765.5 639.74 21395.51 12510.25 11278.9 0.42 1835130.3 0 2014 1134.2 9005893.7 81110.43 10487.17 1857.34 3868.8 254.01 710311.26 0 AVERAGE 24939.37 9566045.64 43456.398 8150.289 17754.72 12610.3 294.45 580986.37 9.676 SD 60284.79 3970451.15 56522.727 6714.955 21785.62 12144.6 695.13 851510.47 8.7052860 CAGR 0.92 5.77-3.74 26.05-12.42 6.87 32.08 136.03-100.00 www.icmrr.org 226 icmrrjournal@gmail.com

Year Platinum Semi Manufactur ed Base Metal, Silver/Gold Clad With Platinum Wst And Scrp Of Precious Metal Artcls Of Jewellery And Parts Artcls Of Gold Smth Other Articles Of Precious Metal Articles Of Natural And Cultured Pearls Imitation Jewellery Coin 2005 4752.89 154.66 21016.85 1514660.1 23605.53 193.94 1355.72 145614.41 38480.01 2006 6381.45 1028.32 46913.6 2125523.2 117397.2 1204.02 186.06 48898.66 3582.38 2007 8700.91 20.69 73306.45 1967108.8 22640.61 3217.09 150.22 53538.77 1883.88 2008 6771777.79 7.49 52069.94 3645280.2 1026236. 2464.38 330.24 70260.68 25172.48 2009 6436.99 0 72709.53 4206515.9 492014.3 444.58 1881.96 86391.84 58030.2 2010 2319.44 246.53 189629.66 3737270.7 310826.9 494.49 2157.34 82697.85 1393863.2 2011 2131.71 3.62 201769.97 6812811.2 496238.8 4749.5 2154.02 151262.96 1140202.7 2012 2091.26 5.56 240964.08 7507269.2 161726.8 1545.82 3426.84 183582.84 229644.33 2013 9854.43 5.24 189004.02 6557035.2 13448.87 2863.65 4100.1 182177.06 27.43 2014 811.43 0.29 120888.76 4964736.3 12604.7 1896.18 2013.92 102280.07 569.48 AVERAGE 681525.83 147.24 120827.29 4303821.1 267674.0 1907.365 1775.642 110670.514 289145.61 SD 2139898.55 320.7454 78239.576 2129675.0 327101.6 1442.035 1330.029 51048.22583 523354.58 CAGR -16.20-46.63 19.12 12.61-6.08 25.61 4.04-3.47-34.38 (Source: Exim data bank) www.icmrr.org 227 icmrrjournal@gmail.com

INTERPRETATIONS The above table shows the total export of eighteen Gems and Jewellery products that is exported for more country during 2005 to 2014. 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 around0.92but Diamonds registered the Positive growth of 5.77%, because of lack of Products available in our country. Precious Ana Semi Precious Stonnegative growth during this year s, because lack of Products demand in the country. While Synthetic Products shows the Positive growth of annually 26.05% due to because of lack of Products are available in our country. Dust And Powder Of Natural Or Synthetic Stones registered a shows a negative growth of -12.42% during the ten year period. Silver Products shows the Positive growth of annually 6.87%because of lack of Products available in our country. Base Metals Clad With Silver that are exported from our country shows the Positive growth of around 32.08% annually and also attars and Polymers Of Ethylene shown an highest growth of 136.03% during the Study period. Lack of Products in the field of Semi Manufactured Clad With Gold also resulted a negative growth of -100.00%during the period. Platinum that are exported from our country shows the negative growth of around -16.20% annually and also attars and Semi Manufactured Base Metal, Silver/Gold Clad With Platinum also shown an negative growth of - 46.63% during the study period. So, the lack of Products demands in the Country. We stand Precious Metal Products have shown a growth of 19.12% annually during the study period. Articles Of GoldSmith registered a shows a negative growth of -6.08% during the ten year period. Other Articles Of Precious Metal Products and Articles Of Natural And Cultured Pearls shows the Positive growth of annually 25.61% and 4.04%. Because of lack of Products available in our country. The high demanded products in Gems and Jewellery was Imitation Jewellery,Coinit registered growth of - 3.47% annually and also pottery of -34.38%. Exibit of Commadity wise Export of Gem and Jewellery www.icmrr.org 228 icmrrjournal@gmail.com

www.icmrr.org 229 icmrrjournal@gmail.com

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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 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. FINDINGS INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW Commodity wise Among ten years the export is lowest during the year 2010 (479.53) and the export value of natural pearls was highest in the year 2013 (190968.13). Through Trend analysis it is found that natural pearls Export is increasing a trend. Among ten years the export is lowest during the year 2005 (5141052.6) and the export value of Diamonds was highest in the year 2010 (13407542.45).Through Trend analysis it is found that Diamonds Export is increasing a trend. Among ten years the export is lowest during the year 2008 (281.91) and the export value of precious or semi precious stones was highest in the year 2005 (118772.94). Through Trend analysis it is found that precious or semi precious stones Export is decreasing a trend. Among ten years the export is lowest during the year 2009 (6579.75) and the export value of reconstructed precious or semi precious stones was highest in the year 2013 (21395.51). Through Trend analysis it is found that reconstructed precious or semi precious stones Export is increasing a trend. Among ten years the export is lowest during the year 2014 (1857.34) and the export value of dust and powder of natural or synthetic stones was highest in the year 2009 (71297.97). Through Trend analysis it is found that dust and powder of natural or synthetic stones Export is decreasing a trend. Among ten years the export is lowest during the year 2014 (3868.8) and the export value of silver was highest in the year 2009 (42630.8). Through Trend analysis it is found that silver Export is decreasing a trend. Among ten years the export is lowest during the year 2009 (0.34) and the export value of base metals clad with silver was highest in the year 2010 (2244.7). Through Trend analysis it is found that base metals clad silver Export is decreasing a trend. Among ten years the export is lowest during the year 2006 (454.5) and the export value of gold was highest in the year 2012 (2376481.71).Through Trend analysis it is found that gold Export is increasing a trend. www.icmrr.org 231 icmrrjournal@gmail.com

Among ten years the export is lowest during the year 2013 (0), 2014 (0) and the export value of semi manufactured clad with gold was highest in the year 2006 (29.91). Through Trend analysis it is found that semi manufactured clad withhold Export is increasing a trend. Among ten years the export is lowest during the year 2014 (811.43) and the export value of platinum was highest in the year 2008 (6771777.79). Through Trend analysis it is found that platinum Export is decreasing a trend. Among ten years the export is lowest during the year 2009 (0) and the export value of semi manufactured base metals silver, gold and platinum was highest in the year 2006 (1028.32). Through Trend analysis it is found that semi manufactured base metals clad with silver, gold and platinum Export is decreasing a trend. Among ten years the export is lowest during the year 2006 (46913.6) and the export value of natural pearls was highest in the year 2012 (240964.08).Through Trend analysis it is found that scrp of precious metal Export is increasing a trend. Among ten years the export is lowest during the year 2010 (3737270.7) and the export value of articles of jewellery was highest in the year 2011 (6812811.27).Through Trend analysis it is found that articles of jewellery Export is increasing a trend. Among ten years the export is lowest during the year 2014 (12604.7) and the export value of articles of gold smith was highest in the year 2011 (496238.89). Through Trend analysis it is found that articles of gold smith Export is decreasing a trend. Among ten years the export is lowest during the year 2005 (193.94) and the export value of articles of precious metal was highest in the year 2007(3217.09). Through Trend analysis it is found that articles of precious metal Export is increasing a trend. Among ten years the export is lowest during the year 2007 (150.22) and the export value of articles of natural and cultured pearls was highest in the year 2012 (3426.84). Through Trend analysis it is found that articles of natural and cultured pearls Export is increasing a trend. Among ten years the export is lowest during the year 2007 (53538.77) and the export value of imitation jewellery was highest in the year 2013 (182177.06). Through Trend analysis it is found that imitation jewellery Export is increasing a trend. Among ten years the export is lowest during the year 2013 (27.43) and the export value of coin was highest in the year 2010 (1393863.25).Through Trend analysis it is found that coin Export is decreasing a trend. SUGGESTIONS Export wise INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW 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. www.icmrr.org 232 icmrrjournal@gmail.com

Government INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW 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 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, 2009. 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, 2010. Gandhi, G.P., Trends in Gems and Jewellery, Market Survey by Former Research Officer of Indian Institute of Foreign Trade (IIFT), New Delhi, 2010. GJEPC, Ideal Cut the Newsletter of the Gem and Jewellery Export Promotion Council, Vol. No.19, 20 and 21, May-October, 2008. Jaikumar, R., Seminar on Net Foreign Exchange Earnings From Gems and Jewellery Exports, Published in Foreign Trade Bulletin, pp. 18-20, August, 1990. Kala Alok, Journal of Gem and Jewellery Industry, International Journal House, Jaipur, Vol. 47, No. 4, April, 2009. www.icmrr.org 233 icmrrjournal@gmail.com