Gems & jewellery export to fall by Rs 20,000 cr: ASSOCHAM
06 Sep '07
3 min read
Contrary to impression that exporters have absorbed the cost, arising from volatility in currency market, assessment made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) says that in view of emerging competition from China and Taiwan, domestic gems & jewellery and readymade garments (RMG) exports would fall by minimum of Rs.20,000 crore in fiscal, ending March 2008 due to rupee strengthening.
The ASSOCHAM estimates on `Rising Rupee and its Impact on Gems & Jewellery and RMG Exports' clearly state that rupee appreciation will pinch this sector the most as their exports will shrink to Rs.2,10,000 crore from targeted Rs.2,30,000 crore by end of current fiscal.
The cut-throat competition from country like China and Taiwan that domestic gems & jewellery exporters and RMG exporters will face in adjustments for review cost, that will be much lower in these countries as compared to India.
This is likely to result in net exports loss of about Rs.12,000 crore in case of gems and jewellery exports and that of Rs.8,000 crore for RMG exports, add ASSOCHAM analysis.
In the last couple of years, gems & jewellery and RMG exports continued to grow at a steady pace and initially it was estimated that in 2007-08, while gems & jewellery exports proceeds will generate about Rs.1,70,500 crore as against Rs. 60,000 crore for readymade garments.
ASSOCHAM added that strengthening of rupee against dollar from nearly Rs.48 to Rs.41 in the last 12-13 months in percentage terms works out to be 17%.
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