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GJEPC Announces Fiscal Year Results

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Left to right: Mr. Kirit Bhansali (co-convener, diamond panel), Mr. Sabyasachi Ray (executive director), Mr. Praveenshankar Pandya (chairman), Russell Mehta (vice chairman), Dilip Shah (convener, international exhibitions) and Ashok Gajera (regional chairman – western region) at the annual conference of The Gem and Jewellery Export Promotion Council (GJEPC) held in Mumbai.

(Press Release)
Mumbai, April 28, 2016: India’s Exports of gems and jewellery dropped 3.46% in FY16 to USD 38,599.18 mn as compared to USD 39,980.63 mn in FY15. Gross exports of cut and polished diamonds in FY2016 (financial year April 2015 to March 2016) dropped 13.66% to USD 19,996.06 million (provisional same ports figures and data) as compared to USD 23,160.18 mn in FY15. Apex body The Gem & Jewellery Export Promotion Council (GJEPC) sponsored by the Ministry of Commerce & Industry, Government of India (GoI) released annual export performance report for FY2016 in the presence of Chairman Mr. Praveenshankar Pandya, Vice Chairman Mr. Russell Mehta and other Directors. Exports of gold jewellery in FY16 dropped 13.07% to USD 8,609.25 mn as compared to USD 9,903.61 mn in FY15. Exports of Colored Gemstones dropped 4.43% in FY16 to USD 433.18 mn as compared to USD 453.25 mn in FY15. Other exports (such as pearls, synthetic stones, costume and fashion jewellery, etc.) increased by 49.66% in FY16.

In FY16, gems & jewellery exports of USD 38,599.18 mn accounted for 14.78% (up FY15) of the country’s cumulative exports of US$ 261,136.80 million (overall exports were down 15.85% as compared to FY15) ranking the gems & jewellery sector as one of the leading foreign exchange earners for the country. However, this is the fifth successive year wherein gross gems & jewellery exports have been falling; and the first time in the last six years that the exports of cut & polished diamonds has fallen to below USD 20,000 mn levels.

Net import of rough diamonds (quantity in lakh carats) dropped 16.17% in FY16 to USD 14,047.81 mn as compared to USD 16,757.37 mn in FY15. Net imports of cut and polished diamonds dropped 58.26% in FY16 to USD 2,771.40 mn as compared to USD 6,640.14 mn in FY15.

Mr. Praveenshankar Pandya, Chairman, GJEPC, said, “For the first time ever, the Export of Cut & Polished diamonds, has shown a huge decline of 13% during April- March 2015-16, in comparison to the same period last year. Weak international demand and high rough diamond prices have led to the absence of Profitability. Slow Demand has led to the fall in Rough Diamond Import by 16% in FY 2015-16 for the first time. Rough Prices are edging upwards, the sluggish global demand has created inventory pile up. Increased Financial Cost or inventory carrying cost has become unbearable. Interest Subvention is the need of the hour!

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“However, export to the US is showing an upward trend but the only deterrent is the DUTY in the Region. Inclusion of gems & jewellery business in Merchandise Exports from India Scheme (MEIS) will bring respite and boost trade to the Region.”

Cut and polished diamonds accounted for 52% of the gross gems & jewellery exports in FY16 while gold jewellery exports accounted for 22% of the gross G&J exports. Silver jewellery accounted for 8% of gross exports respectively. Major Gem & Jewellery Export Markets – The UAE in FY16 accounted for 32% (up from 29% in FY15) of the gross exports while those to the US accounted for 22% (up from 21% in FY15) of the gross exports. Exports to Hong Kong in FY16 accounted for 28% (down from 31% in FY15) indicating the slowdown in China/ Hong Kong.

Union Commerce & Industries Ministry is considering the recommendations made by GJEPC with respect to the availability of Duty Free Gold by the Nominated Agencies. Small and Medium exporters are still facing issues in procurement of duty free gold from the nominated agencies/banks across the country. Replenishment Scheme is still not operational and jewellers have still not been able to get their gold used in manufacturing jewellery or export purpose from their own stock

“GJEPC is preparing a ‘Job Work’ draft Policy to be shared with the Government. The facility of job work is already allowed in China. In-spite of labour being around 20% expensive than India, global diamantaires are sending their diamonds to China for manufacturing purpose as job work policy is already in place in China. It is proposed to allow Goods on consignment basis for manufacturing purpose thus creating more jobs for artisans/karigars in the country”, said Mr. Russell Mehta , Vice Chairman, GJEPC

GJEPC is collaborating with leading Miners namely De Beers, ALROSA and Rio Tinto and to launch a Joint Promotional ‘Generic Diamond Promotion’ Programme. Diamonds or Diamond Jewellery does not feature as Top of the Mind Recall amongst Consumers today be it India or Globally. Category is losing its sheen to its competing luxury categories: Holidays, Designer Fashion, Accessories, etc. Man made diamonds are affecting Consumer Confidence.

To realise the Make in India dream of the Prime Minister and ‘Make India’ an International Diamond Trading Hub, the sector seeks implementation of Ease of Business for the Indian diamond sector. By attracting International Manufacturing business to India (diamantaries from Belgium, Israel and Dubai), it can tap additional market share of approximately around USD 20 bn (in FY 2018-19) thereby helping the Government garner more tax collection in the long run. This will also help create jobs for 1.56 mn Indians (by 2018-19) in the gems & jewellery sector while preserving skill and talent of labour force of the existing 3.5 mn labour force. This will help in tackling trade deficit and current account deficit through higher exports.

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According to Bain & Company’s report titled ‘The Global Diamond Industry 2015 – Growth perspectives amid short-term challenges’, the long-term outlook for the diamond market remains positive, with demand expected to outpace supply starting in 2019. However, as in past years, the industry faces key challenges: sustaining long-term demand for diamonds in developed markets and among a new generation of consumers, and boosting demand from other sources than jewellery and aesthetic use. Annual gold jewellery demand across the world declined 3% in 2015, year-over-year, to 2,414.9 tons as many markets remain under the strain of geopolitical tensions and instability (Source: World Gold Council).

The Chairman also urged the government to permit the sale of rough diamonds at the SNZ in Mumbai by implementing a 0.25% tax on sales turnover achieved at SNZ by foreign mining companies. This, he pointed out, would generate a new area of tax collection by shifting such sales from Belgium, Israel and Dubai.

An All-India Jewellers Meet called by GJEPC in Mumbai on April 26, 2016 was attended by over 60 jewellers representing four major all-India bodies and Regional associations. The 20-member Committee was formed which will include representatives of Gem & Jewellery Export Promotion Council (GJEPC), All India Gem & Jewellery Trade Federation (GJF), All India Jewellers Action Committee, Indian Bullion & Jewellers Association (IBJA), etc. The Committee will ensure a coordinated industry response on Excise issue and will focus on preparing a common submission to the Ashok Lahiri headed Sub-Committee of the High Level Committee set up by the government to look into issues related to the Imposition of Central Excise duty on jewellery.

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CIBJO Releases Marketing & Education Special Report, Analyzes Next Great Jewelry-Buying Generation

Report returns to what has been defined as the next great jewelry-consuming group, Generation Z.

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(PRESS RELEASE) MILAN, ITALY — With fewer than 10 weeks to go to the opening of the 2019 CIBJO Congress in Manama, Bahrain, on November 18, 2019, the first of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Marketing & Education Commission, headed by Jonathan Kendall, the report returns to what has been defined as the next great jewelry-consuming group, Generation Z, providing a breakdown of what the industry needs to consider if it is to ensure that jewelry remains a favored purchase.

Generation Z refers to young consumers, who currently are 15 to 25 years of age.

“Gen Z is coming to our markets very soon if it has not already arrived in reality,” writes Mr. Kendall. “Its members are forecast to spend a whopping $143 billion this year alone. So we better get them on our side if we want to enjoy a rosy future. In fact, the future success of the jewelry industry will depend on our understanding the needs and wants of Generation Z. Get this right and we can all look forward to strong profitable years moving forward. Get it wrong and we could be destined for the scrap heap – not overnight maybe, but ultimately.”

Communicating predominantly via the social media, studies show that Generation Z is more environmentally conscious and gender neutral than any generation that preceded it. It celebrates authenticity, diversity and human imperfection. It is more likely to heed the advice of a friend, rather than a celebrity.

“Gen Z is prepared to splurge but it must be worth it. The more added value the better, and that can come from its environmental credentials or its social value,” notes Mr. Kendall.

To download a full copy of the CIBJO Market & Education Commission’s special report, click here.

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Gem Legacy Celebrates 1 Year Anniversary

It launched in September 2018.

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(PRESS RELEASE) ROYAL OAK, MI – Gem Legacy is celebrating the successes of its 1 year anniversary after launching in September 2018 by founder Roger Dery. Gem Legacy is a 501(c)3 nonprofit supporting education, vocational training, and local economies in East African colored gemstone mining communities.

The first year has boasted many successes, thanks to industry partners and donors. Roger Dery, founder and executive director of Gem Legacy looks back on the first year: “Lives are deeply affected because we’re ensuring that a group of widowed miners will find Tsavorite Garnet, 28 orphans will get a full education, kids are getting full nights of sleep on new mattresses, and young adults are entering the gem industry with knowledge in gemology and gem faceting. They have hope because we, the jewelry industry, are saying ‘we see you and we believe in you.’”

Other highlights from Gem Legacy’s first year include the formation of its advisory board (Christina Clover-Field, Ben Smithee, and Monica Stephenson) and its Leadership Council (Omi Gems and Parle Jewelry Designs). The leadership council is growing to be a consortium of the industry’s top leaders dedicated to sharing Gem Legacy’s mission and activating a united industry-wide effort to support the mining communities in Africa.

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Press Releases

Technological Solutions for Sustainability and Responsible Sourcing Spotlighted at CIBJO-IEG Seminar

Seminar marked the 10th year of cooperation between CIBJO and IEG.

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(PRESS RELEASE) MILAN, ITALY — With members of the jewelry and gemstone sectors under growing pressure to actively demonstrate that they are conducting their businesses in a sustainable manner, including verifying that the items they purchase, process and sell have been sourced responsibly, a range of technological solutions are currently being developed to help them comply with the due diligence requirements. These came under the spotlight during a seminar on September 9, 2019, at the VICENZAORO show in Vicenza, Italy, organized by CIBJO and hosted by the Italian Exhibition Group (IEG).

The seminar was the latest edition in a series of educational programs organized by the two bodies, which is endorsed by the United Nations Economic and Social Council (ECOSOC), to support corporate social responsibility and sustainability in the jewelry sector. As Marco Carniello, director of IEG’s jewelry and fashion division pointed out, the seminar this September marked the 10th year of cooperation between CIBJO and Italy’s leading jewelry trade show organizer.

A growing percentage of the jewelry, gemstone and precious metals industries have taken steps in recent years to implement sustainable and responsible sourcing principles in their businesses, with more than 1,300 worldwide already certified by compliance organizations, after undergoing monitoring by independent auditors. But in an industry that is dominated by small and medium-sized companies, many participants find it challenging to follow suit and consequently could experience difficulty in gaining access to chains of supply. The technologies discussed at the seminar are largely being developed to address these challenges.

“CIBJO is committed to the development of an ethical and sustainable jewelry industry, which sources its raw materials in both a responsible and transparent manner,” said CIBJO President Gaetano Cavalieri, opening the seminar. “As we reiterated in the new Responsible Sourcing Blue Book which was approved earlier this year, we believe that all participants should do due diligence to the best of their ability. At the same time, we also insist that no ethical members of our community be discriminated against because they currently lack the resources necessary to implement a full compliance system. It is for this reason that we view the development of technological solutions as being so important.”

The panel of speakers, which was moderated by Erik Jens, vice president of CIBJO’s Responsible Sourcing Commission, represented a cross section of this growing industry service sector, providing solutions to industry participants at all stages of the chain of distribution, from the mine to the retailer.

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