The US retail sales showed their largest gain since September as the economic and financial outlook stabilized
The Gems and Jewellery Export Promotion Council (GJEPC) has urged Indian banking sector to increase its exposure in the gem and jewellery sector which has gone down to 3% of the overall requirement for the sector.
According to GJEPC, irrespective of several initiatives by the government, the banking sector is yet to evolve in the gems and jewellery sector. The banking sector exposure to the gems and jewellery sector is mere 3% of the overall requirement for the sector.
GJEPC vice-chairman Colin Shah said, “The industry urges the banks to relax some norms for working capital lending to the sector. The banking sector should look at the gems and jewellery sector in a serious manner so that India can become world leader in gems and jewellery exports.”
Shah said India’s exports of gems and jewellery products to the US market are encouraging and they were mainly due to rising GDP growth, employment rate and private consumption expenditure in the US. It is believed that the momentum of the US demand will continue further and this is a good sign for Indian gems and jewellery exports.
Today, India caters to over 16% of the US market’s gems and jewellery demand in financial year 2019, and exports to the US have shown a growth of 3.97% to $10 billion in 2018-19. The US retail sales showed their largest gain since September as the economic and financial outlook stabilized, according to National Retail Federation (NRF).
India’s cut and polished diamond exports to the US in 2018-19 are showing a growth of 9% to $8.3 billion. India’s exports of plain and studded gold jewellery to the US in 2018-19 are showing a growth of 7.76% to $1.5 billion.
Shah said, “The US consumers are expected to spend 13% more on jewellery this Mother’s Day, according to NRF. Global demand for gold jewellery rose 1% year on year to 530.3 tonnes in the first quarter, buoyed by strong demand from Indian market, the World Gold Council (WGC) reported.”