Thursday, 1st April 2004 (4150 views)

India's jewellery makers are looking forward to a surge in exports following the US decision to end its 5.7 per cent levy on finished jewellery products, according to a leading industry figure.

Raj Basnatani, chairman of export firm Soundcraft Industries, told the Business Standard that the move could double the value of Indian jewellery exports to $1.2 billion in 2005.

According to Mr Basnatani, Indian jewellers are already gearing up for an expected boom in business. Businesses such as Soundcraft that had moved production plants abroad, despite the higher labour costs, to take advantage of zero tariffs, were now planning to return to India.

"As recently as a year ago, the 15,000-odd factory hands lined up at long tables working with tiny gems, which required little skill and did not add much profit," he told the newspaper.

"Now, they are working with larger stones, creating more complex settings, using newer equipment and pumping up profits."

The move is especially significant as it gives Indian firms an advantage over their Chinese rivals, which continue to face a 6.6 per cent levy.

 

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